7) Pets are big business. More and more people are spending their earning on pets. Here is a set of data for Expenditures on Pets (in billions of dollars) Year Expenditures (billions) 1994 17 1998 23 2001 28.5 2003 32.4 2006 38.5 2007 41.2 2008 43.4 a) Draw an appropriate scatter diagram (all required elements) using “years since 1994” on the x-axis b) Create a regression line for this data. What is the meaning (in terms of the problem) of the slope of this line and the y-intercept (again in terms of this problem) c) Use this line to predict the amount spent in 2005 and 2013. d) Now use interpolation on the points for 2003 and 2006 to get the 2005 value and use extrapolation on the 2007 and 2008 values to get the 2013 value e) Comment on which method you feel is most accurate in this case
7) Pets are big business. More and more people are spending their earning on pets. Here is a set of data
for Expenditures on Pets (in billions of dollars)
| Year | Expenditures (billions) |
| 1994 | 17 |
| 1998 | 23 |
| 2001 | 28.5 |
| 2003 | 32.4 |
| 2006 | 38.5 |
| 2007 | 41.2 |
| 2008 | 43.4 |
a) Draw an appropriate
b) Create a regression line for this data. What is the meaning (in terms of the problem) of the slope of
this line and the y-intercept (again in terms of this problem)
c) Use this line to predict the amount spent in 2005 and 2013.
d) Now use interpolation on the points for 2003 and 2006 to get the 2005 value and use extrapolation
on the 2007 and 2008 values to get the 2013 value
e) Comment on which method you feel is most accurate in this case
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