Chapter 2.4, Problem 22E

(a)

To determine

The correct logistic function $f$ from the given choices for the following curve, the graph shows the approximate value of subprime mortgage debt outstanding in the United States during the real-state run-up in $2000-2008$ that were subprime as well as logistic regression curve

(A). $A\left(t\right)=\frac{1850}{1+5.36\left({1.8}^{-t}\right)}$

(B). $A\left(t\right)=\frac{1350}{1+4.2\left({1.7}^{-t}\right)}$

(C). $A\left(t\right)=\frac{1020}{1+5.3\left({1.8}^{-t}\right)}$

(D). $A\left(t\right)=\frac{1300}{1+4.2\left({0.9}^{-t}\right)}$

(b)

To determine

To calculate: The year for which the outstanding debt is growing fastest according to the obtained model from graph, graph is shown below: