the cost of a LCD TV dropped from 265 dollars in 2012 to 199

the cost of a LCD TV dropped from 265 dollars in 2012 to 199 dollars in 2014 find the rate at which the cost has been decreasing? construct a linear model to estimate future costs of TV\'s? use your model to estimate what the cost will be in 2016?

Solution

The cost of a LCD TV dropped from 265 dollars in 2012 to 199 dollars in 2014 i.e in 2 years, the cost dropped by $ 265 - $ 199 = $66. The rate at which the cost has decreased is $ 66/2 = $ 33 per year. Let x be the number of years from 2012. Then the cost y, of the LCD TV in the year 2012 + x is given by y = 265 - 33x . Since 2016 -2012 = 4, the cost of the LCD TV in 2016 will be 265- 33*4 = 265 - 132 = $133