Question

1. a companys profit doubles every year. which type of regression best models this situation? a) linear b) quadratic c) exponential

Explanation:

When a quantity doubles every year, it follows an exponential growth pattern. In an exponential function \(y = a\cdot b^{x}\), if \(b> 1\) (here \(b = 2\) since it doubles), the function represents growth. A linear function has a constant rate of change (\(y=mx + c\)), a quadratic function is of the form \(y=ax^{2}+bx + c\). Since the profit is doubling (a multiplicative change) each year, not increasing by a constant amount (linear) or with a squared term (quadratic).

Answer:

C. Exponential