In 2006 the U.S. "housing bubble" was beginning to burst. Suppose one news article at the time stated: "The median price of a home sold in the United States in the third quarter of 2006 was $226,500, and forecasters predict that the median price of houses will fall by 8.1% each year." Assume that the median price decreases at the forecasted decay rate of -8.1%. (a) Find the decay factor a. a = Find an exponential decay model E(x) = Ca for the median price of a home sold in the United States x years since the prediction. E(x)= (b) Use the model found in part (a) to predict median price of homes sold in the third quarter of 2009. (Round your answer to the nearest cent.) $

In 2006 the U.S. "housing bubble" was beginning to burst. Suppose one news article at the time stated: "The median price of a home sold in the United States in the third quarter of 2006 was $226,500, and forecasters predict that the median price of houses will fall by 8.1% each year." Assume that the median price decreases at the forecasted decay rate of -8.1%. (a) Find the decay factor a. a = Find an exponential decay model E(x) = Ca for the median price of a home sold in the United States x years since the prediction. E(x)= (b) Use the model found in part (a) to predict median price of homes sold in the third quarter of 2009. (Round your answer to the nearest cent.) $

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

In 2006 the U.S. "housing bubble" was
beginning to burst. Suppose one news article
at the time stated: "The median price of a
home sold in the United States in the third
quarter of 2006 was $226,500, and
forecasters predict that the median price of
houses will fall by 8.1% each year." Assume
that the median price decreases at the
forecasted decay rate of -8.1%.
(a) Find the decay factor a.
a =
Find an exponential decay model
E(x) = Ca for the median price of a home sold
in the United States x years since the
prediction.
E(x)=
(b) Use the model found in part (a) to predict
median price of homes sold in the third
quarter of 2009. (Round your answer to the
nearest cent.)
$

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