*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

Question

x-axis represents Units sold, whilst y-axis represents revenue in millions

What does the slope of 14 mean in context? Response area 2)

What does the y-intercept (0, 3) mean in context?

Answer 1

In the context of the equation \( y = \frac{1}{4}x + 3 \), where \( y \) represents revenue in millions and \( x \) represents units sold:

1. Slope (14): There seems to be a misunderstanding in your question because the slope provided in the equation \( y = \frac{1}{4}x + 3 \) is actually \( \frac{1}{4} \), not 14. The slope of \( \frac{1}{4} \) means that for every additional unit sold, the revenue increases by 0.25 million dollars (or $250,000). In this context, the slope indicates how much revenue is generated per additional unit sold.

2. Y-Intercept (0, 3): The y-intercept of the equation is 3, which means that when no units are sold (i.e., \( x = 0 \)), the revenue is $3 million. This can represent fixed costs or baseline revenue that the business has, even if no units are sold. It's the amount of revenue expected regardless of sales activity.