to find a few of her 22 Anne invested 1000 in a GIC She was

to find a few of her 22. Anne invested $1000 in a GIC. She was able to find a few monthly bank statements for the GIC. 10 15 21 Month Value ($) 1000 1030.30 1104.62 1160.97 1232.39 Find the amount she will have invested after three years (36 months rowth

Solution

Here, the value of amount are changing by increments, We use a linear model to predict the amount after three years.

THe model is

A=b₀+b₁ T

where A=amount

T=time(months)

b₀ =intercept

b₁ slope

Unsing excel

The estimated regression model is

A=997.434+11.02324T

The amount she will have invested after three years is

A=997.34+11.02324*36=$ 1394.271

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.999502
R Square	0.999005
Adjusted R Square	0.998673
Standard Error	3.448479
Observations	5
ANOVA
	df	SS	MS	F	Significance F
Regression	1	35821.7	35821.7	3012.251	1.33E-05
Residual	3	35.67602	11.89201
Total	4	35857.38
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	997.4342	2.500516	398.8913	3.47E-08	989.4765	1005.392
X Variable 1	11.02324	0.200846	54.88397	1.33E-05	10.38406	11.66243