Question

The table below shows the relationship between years and average home price.




Year

1990

1991

1992

1993

1994

1995

1996



Average Home Price

120,000

122,000

122,500

123,000

125,000

128,000

128,500












What is the equation of the line of best fit? (let x = the number of years after 1990)

Answer 1

for the line of best fit, i would take the first point and the last point, which is year 1990, 1996

so you got two points (0, 120000) and (6, 128500)

slope = (128500-120000)/6 = 1416.7

substitute a point in
y = 1416.7x + b
120000 = b.

y = 1416.7x + 120000

Answer 2

Using the line of best fit, what would be the average price of a house in 2015?

Answer 3

2015 - 1990 = 25

so substitute x = 25


y=155417.5