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meerkat18
The data points shown are the black dots on the plot. From the graph, it is obvious that the data points fit more on the linear model than the exponential model. To illustrate this clearly, let's find the difference of consecutive data starting from the 12th month:

2,110 - 1500 = 610
1,500 - 870 = 630
870 - 220 = 650

Hence, it shows that more or less, the trend decreases about the same amount every 6 months. The answer is A.

The better regression model is one that best fits all the data points.

Correct response;

  • The true statement is; The linear model better represents the situation because the amount she owes is decreasing by about the same amount every 6 months.

How is the better regression model found?

Finding the slope between consecutive points gives;

Between the first and second point, gives;

  • [tex]\mathbf{\dfrac{1500 - 2110}{18 - 12}} = -101.\overline 6[/tex]

Between the second and the third point gives;

  • [tex]\mathbf{\dfrac{870 - 1500 }{24 - 18}} = -105[/tex]

Between the third and the fourth point, we get;

  • [tex]\mathbf{\dfrac{220 - 870}{30 - 24}} = -108.\overline 3[/tex]

Therefore, the rate of decrees of the amount owed between every 6

months is approximately constant which is representative of a linear

model.

The correct option is therefore;

  • The linear model better represents the situation because the amount she owes is decreasing by about the same amount every 6 months.

The graph of the given data is plotted using MS Excel, and the linear

regression model shows a correlation of approximately 1, which

indicates that a linear model better represents the data.

Learn more about regression model here:

https://brainly.com/question/10302692

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