The discounts State Farm offers to customers who have insured a vehicle with the company are shown
Question:
Let p be the discount (in percent) for customers who have insured a vehicle with the company for t years.
a. Construct a scatterplot by hand and draw a model on the scatter plot.
b. Use your model to predict the discount for 10 years of loy- alty. Did you perform interpolation or extrapolation?
c. It turns out that for years of loyalty beyond 6 years, the discount is still 18%. Construct a scatterplot of the data for years of loyalty from 0 to 10 years.
d. Compute the error in the prediction you made in part (b). Explain why the error is so large.
e. Use the scatterplot that you constructed in part (c) to mod- ify the model.
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