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*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

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

What does the slope of 1/4 mean in context? Response area 2)

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

Options:

When 0 units are sold, the revenue is 3 million

There is an increase of 4 million revenue for every 1 unit sold

When 3 units are sold, the revenue is 0 million

There is an increase of 1 million in revenue for every 4 units sold

1 answer

Let's analyze each part of the question in the context of the provided equation of the line of best fit, which is given by \( y = \frac{1}{4}x + 3 \).

  1. What does the slope of \( \frac{1}{4} \) mean in context?
    The slope represents the change in revenue (in millions) for each unit sold. In this case, a slope of \( \frac{1}{4} \) means there is an increase of 1 million in revenue for every 4 units sold. Therefore, this interpretation directly supports the fourth option.

  2. What does the y-intercept (0, 3) mean in context?
    The y-intercept is the value of \( y \) (revenue) when \( x \) (units sold) is 0. This means that when no units are sold, the revenue is 3 million. Therefore, this interpretation aligns with the first option.

Summary of Interpretations:

  • Slope: There is an increase of 1 million in revenue for every 4 units sold.
  • Y-intercept: When 0 units are sold, the revenue is 3 million.