Question

company rents cranes that can be used to lift and move heavy objects. The total cost to rent a crane is based on the cost for setting up the crane onsite and a cost per hour for every hour the crane is in operation.

Hours of operation =

Total cost =

Which of the following describes the meaning of the term b?

A.
It is the cost per hour of operating the crane. It is the same for every job.

B.
It is the cost for setting up the crane. It is the same for every job.

C.
It is the cost for setting up the crane. It is higher for jobs that require more time.

D.
It is the cost per hour of operating the crane. It is higher for jobs that require more time.

Answer 1

B.

In the linear model Total cost = b + (cost per hour)(hours), b is the fixed amount when hours = 0 — the setup (one-time) fee — and does not depend on how long the crane operates.