Consider the Four Points a = (1, 0), B = $y = a x ^ { 2 } + b x + c$

question 66

Essay

Consider the four points A = (1, 0), B = (2, 3), C = (3, 5)and D = (4, 3)in the xy-plane.
Find the values of a, b and c to determine the parabola of best fit, $y = a x ^ { 2 } + b x + c$ for these points.
(The parabola of best fit minimizes the sum of the squares of the vertical distances from each point to the parabola.)

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and cash outflows during a specific period.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the expense is evenly distributed over its useful life.

Accounting Rate of Return

A metric used to measure the profitability of investments, calculated by dividing the average net income by the initial investment cost.