1) The slope of 1/4 means that for every unit increase in the number of units sold, the revenue increases by 1/4 million dollars. In other words, for every 4 units sold, the revenue increases by 1 million dollars.
2) The y-intercept (0, 3) means that when no units are sold, the revenue is 3 million dollars. This can be interpreted as the fixed or base revenue that the company earns even without selling any units. It may represent factors such as fixed costs, existing customer base, or other sources of revenue.
The y-axis is revenue in millions and the x-axis is units sold. An equation for the line of best fit of the graph below could be: y=1/4x+3
1) What does the slope of 1/4 mean in context?
2) What does the y-intercept (0, 3) mean in context?
3 answers
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Apologies for the incorrect response. Let me correct it:
1) The slope of 1/4 means that for every 1 unit increase in the number of units sold, the revenue increases by 1/4 million dollars. In other words, for each additional unit sold, the revenue increases by 0.25 million dollars.
2) The y-intercept (0, 3) means that when no units are sold, the revenue is 3 million dollars. This means that even without selling any units, the company still has a base revenue of 3 million dollars. This could represent factors such as fixed costs, existing customer base, or other sources of revenue.
1) The slope of 1/4 means that for every 1 unit increase in the number of units sold, the revenue increases by 1/4 million dollars. In other words, for each additional unit sold, the revenue increases by 0.25 million dollars.
2) The y-intercept (0, 3) means that when no units are sold, the revenue is 3 million dollars. This means that even without selling any units, the company still has a base revenue of 3 million dollars. This could represent factors such as fixed costs, existing customer base, or other sources of revenue.
1 answer