To interpret the slope of the line of best fit in a scatter plot of profit by month, we consider that the slope represents the change in profit for each additional month of operation. Specifically, if the slope is positive, it indicates that the company's profit is increasing as time goes on, which may suggest that the company is becoming more profitable as it gains experience or customer base.
The x-intercept, on the other hand, represents the point in time when the company’s profit is zero. This value indicates when the company breaks even, which is an important milestone for any new business. It signifies that before this point, the company was operating at a loss, and after this point, it starts to make a profit.
In summary:
- The slope of the line represents the rate of profit increase per month, indicating the company's growth.
- The x-intercept shows the time (in months) when the company's profit reaches zero, marking the break-even point.