Sports salaries. Table shows the average salaries for players in Major League Baseball (MLB) and the NBA in selected years since 1990.

boitshupoO

boitshupoO

Answered question

2021-09-03

Sports salaries. Table shows the average salaries for players in Major League Baseball (MLB) and the National Basketball Association (NBA) in selected years since 1990.
a. Let x represent the number of years since 1990 and find exponential regression model y = abx for the average salary in MLB. Use the model to estimate the average salary (to the nearest thousand dollars) in 2022.
b. The average salary in MBL in 2000 was 1.984 million. How does this compare with the value given by the model of part (a)?

Answer & Explanation

Laith Petty

Laith Petty

Skilled2021-09-04Added 103 answers

Consider the value of $10,000 invested in each account at the of 1 year. Need to find the following terms.
a) Need to find Stonebridge 0.95% compounded monthly. If a pricipal p is invested at an annual rate r and compounded continuosly then the amount in the accout at the end of t years is given by A=Pert.
Given annual rate is
r=0.95%
=0.95100
=0.0095
Here we are using the formulae
A=P(1+rm)mt
Substituting P=10,000, r=0.0095, m=365 and t=1 in A=P(1+rm)mt
A=10,000(1+0.009512)(12)(1) Replacing the values
=10,000(1.0007)12 Simplify
=10,000(1.009541)=10,095.41
Thus the required deposit Stonebridge Bank compounded montly is $10,095.41
b) Need to find Deep Green Bank 0.80% compounded daily. If a principal P is invested at an annual rate r and compounded continuosly then the amount in the account at the end of t years is given by A=Pert
Given annual rate is:
r=0.80%
=0.80100
=0.008
Here we are using the formulae
A=P(1+rm)mt Substituting P=10,000, r=0.008, m=365 and t=1 in A=P(1+rm)mt
A=10,000(1+0.008365)(365)(1) Replacing the values
=10,000(1.0002)365
=10.000(1.0080319)
=10,080.32Thus the required deposit Deep Green Bank compounded daily is 10,080.32

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