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Subprime Mortgages during the Housing Crisis (Com- pare Exercise 29 in Section 10.4.) The percentage of mort- gages issued in the United States during the period 2000–2009 that were subprime (normally classified as risky) can be approximated by
A(t)=151+8.6(1.8)−t(0≤t≤9), where t is the number of years since the start of 2000.
a. Estimate A(6) and A'(6). (Round answers to two significant digits.) What do the answers tell you about subprime mortgages?
b. Graph the extrapolated function and its derivative for 0≤t≤16, and use your graphs to describe how the derivative behaves as t becomes large. (Express this behavior in terms of limits if you have studied the sections on limits.) What does this tell you about sub- prime mortgages? [HINT: See Example 5.]
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Chapter 3 Solutions
Applied Calculus
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APPLIED STAT.IN BUS.+ECONOMICS
Thinking Mathematically (6th Edition)
Elementary and Intermediate Algebra: Concepts and Applications (7th Edition)
Calculus: Early Transcendentals (2nd Edition)
Precalculus: A Unit Circle Approach (3rd Edition)
Elementary Statistics ( 3rd International Edition ) Isbn:9781260092561
- Number 4 plsarrow_forwardGood Day, Would appreciate any assistance with this query. Regards,arrow_forwardThis question builds on an earlier problem. The randomized numbers may have changed, but have your work for the previous problem available to help with this one. A 4-centimeter rod is attached at one end to a point A rotating counterclockwise on a wheel of radius 2 cm. The other end B is free to move back and forth along a horizontal bar that goes through the center of the wheel. At time t=0 the rod is situated as in the diagram at the left below. The wheel rotates counterclockwise at 1.5 rev/sec. At some point, the rod will be tangent to the circle as shown in the third picture. A B A B at some instant, the piston will be tangent to the circle (a) Express the x and y coordinates of point A as functions of t: x= 2 cos(3πt) and y= 2 sin(3t) (b) Write a formula for the slope of the tangent line to the circle at the point A at time t seconds: -cot(3πt) sin(3лt) (c) Express the x-coordinate of the right end of the rod at point B as a function of t: 2 cos(3πt) +411- 4 -2 sin (3лt) (d)…arrow_forward
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
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