Question 2

An exponential model is more appropriate. A linear model would be appropriate for sales that increase approximately by a fixed amount each year. The data in the model increase at a greater rate each year, suggesting an exponential model.

Using the exponential model, we obtain

s(t) = 200(1.5)t.
For the year 2000, t = 4, and
s(4) = $1,012.5.