The linear equation that is asked from the problem takes the form of:
y = m x + b
where,
y = the median salary
x = the number of years
m = the slope of equation
b = y-intercept
The slope of the equation (m) can be calculated using the formula:
m = (y2 – y1) / (x2 – x1)
m = (1326720 – 441300) / (2008 – 2000)
m = 110,677.5
The y-intercept is then obtained by using any of the data pair:
441300 = 110677.5 (2000) + b
b = -220913700
Therefore the complete equation is:
y = 110677.5 x – 220913700
The median salary in 2016 is therefore:
y = 110677.5 (2016) – 220913700
y = $2,212,140
Answer:
$2,212,140
