Adam calculates his annual salary (base pay and commission), y, using the model y = 0.28x + 38,000, where x represents his total sales

Question

for the year. What is the meaning of the y-intercept in the model?
the y-intercept represents Adam's base pay
• the y-intercept represents the highest salary Adam can earn
the y-intercept represents Adam's total sales when he earned no commission
• the y-intercept represents Adam's commission pay when he had zero total sales

Answer 1

• the y-intercept represents Adam's base pay

The y-intercept in the model (38,000) represents Adam's base pay, which is the amount he earns regardless of his total sales. This is the fixed component of his annual salary.