Problem 1:

Use the table shown below. Assume the data can be represented as a linear relationship.

a) Using the two points defined by data from 2000 and 2005, develop a linear equation for the data.

b) Using the equation found in a), predict the tax revenue for 2006.

c) Use the calculator to determine the “best fit” equation for the data.

d) Using the equation found in c), predict the tax revenue for 2006.

e) Using the equation found in c), estimate tax revenue for the missing 2002 data

Year Sales Tax Revenue
2000 $19,500
2001 $21,000
2003 $24,000
2004 $27,300
2005 $31,000

Note: Data is missing for 2002. The county clerk embezzled the funds for that year.