OCR H240/01 2020 November — Question 6

Exam BoardOCR
ModuleH240/01 (Pure Mathematics)
Year2020
SessionNovember
TopicExponential Equations & Modelling

6 A mobile phone company records their annual sales on \(31 ^ { \text {st } }\) December every year.
Paul thinks that the annual sales, \(S\) million, can be modelled by the equation \(S = a b ^ { t }\), where \(a\) and \(b\) are both positive constants and \(t\) is the number of years since \(31 ^ { \text {st } }\) December 2015. Paul tests his theory by using the annual sales figures from \(31 ^ { \text {st } }\) December 2015 to \(31 { } ^ { \text {st } }\) December 2019. He plots these results on a graph, with \(t\) on the horizontal axis and \(\log _ { 10 } S\) on the vertical axis.
  1. Explain why, if Paul's model is correct, the results should lie on a straight line of best fit on his graph. The results lie on a straight line of best fit which has a gradient of 0.146 and an intercept on the vertical axis of 0.583 .
  2. Use these values to obtain estimates for \(a\) and \(b\), correct to 2 significant figures.
  3. Use this model to predict the year in which, on the \(31 { } ^ { \text {st } }\) December, the annual sales would first be recorded as greater than 200 million.
  4. Give a reason why this prediction may not be reliable.