Linear Regression

(a) Since Aarush’s income increases exponentially, the appropriate regression model is the Exponential Regression Model.
This model is used when data shows a constant percentage growth or decay over time.
(b) The general formula for an exponential regression model is:

Where:
= predicted value (income)
= initial value (income at start)
= base or growth factor (greater than 1 for growth)
= independent variable (months)
Example: If Aarush started with \$1000 income and it grows by 20% each month, then

(c) A sample chart with dummy data can be drawn using months (1 to 6) on the X-axis and income on the Y-axis.
Example dummy data:
Month 1: \$1000
Month 2: \$1200
Month 3: \$1440
Month 4: \$1728
Month 5: \$2074
Month 6: \$2489
This chart will show a rising curve that steepens over time, indicating exponential growth.