How do I predict an item's price at a future date (what formula do I use?)? given info. is cost of a Fast food Hamburger $0.15 in 1960,$0.30 in 1970, $0.50 in 1980, $0.75 in 1990, $0.89 in 2000.
question#1 find average rate of increase. then predict the price of a fast food hamburger in the future...say 2020.
My work so far is:
a. 1960-1970: (0.30-0.15)/0.15 = 0.15/0.15 = 1 = 100%
b. 1970-1980: (0.50-0.30)/0.30 = 0.20/0.30 = 0.6repeating = 67%
c. 1980-1990: (0.75-0.50)/0.50 = 0.25/0.50 = 0.50 = 50%
d. 1990-2000: (0.89-0.75)/0.75 = 0.14/0.75 = 0.186(with the 6 repeating) = 19%
e. 100% + 67% + 50% +19% = 236/4 = 59% average rate of change from 1960-2000.
Is my work right so far and what formula do I use to predict a future price?
Yeah I agree. Can you explain? @Reiny
It's been five years and I still need an explanation for that lmao
you could say that the increase is somewhat linear, (straight-lined), and let the equation be
cost = .59n + .15, where n is a multiple of 10 with 1960 represented by n=0
so 2020 would be n = 6
(2020 = 1960 + 60 and 60 = 6(10) )
cost = .59(6) + .15 = 3.69
I'm confused? Can you explain how you did this?
Your work so far is correct. You have correctly computed the average rate of increase for each period and then found the average rate of change from 1960-2000.
To predict the price of a fast food hamburger in the future, say 2020, you can use the average rate of change you calculated. Here's how to do it:
1. Determine the number of years between the current year (2000) and the future year (2020): 2020 - 2000 = 20 years.
2. Multiply the number of years by the average rate of change: 20 years * 59% = 1180%.
3. Convert the percentage to a decimal by dividing by 100: 1180% / 100 = 11.8.
4. Add 1 to the decimal: 11.8 + 1 = 12.8.
5. Multiply the result by the price in the year 2000: $0.89 * 12.8 = $11.39.
Therefore, based on the average rate of change you calculated, the predicted price of a fast food hamburger in the year 2020 would be approximately $11.39.
It's important to note that this prediction assumes the average rate of change remains consistent over time, which may not always be the case in reality. Additionally, other factors such as inflation and economic changes can also influence price fluctuations.