Answer
See sample answer below.
Work Step by Step
The regression function is exponential, as we worked out in exercise 90. Is it trustworthy, though? For a short time after the blog, surely yes.
But, in the 2008, three years after the blog, the economy crashed, with the "bursting of the housing bubble" eaving many people without their homes, as they could not make mortgage payments.
So, the trend did not continue three years after the graph was constructed. The people who based their investments on the projected growth lost their money. This is the "bubble bursting" event.
This is in line with conclusions of many of the exercises of this section, that exponential growth models can be applied only for short periods of time, because a change in resources can abruptly stop the growth, and make the model unusable.
Here, the author could not have foreseen the economic worldwide recession, making the model obsolete (not applicable in the long run).
