*The y-axis is revenue in millions and the x-axis is units sold.
1. An equation for the line of best fit of the graph below could be: y=1/4x+3
What does the slope of 1/4
mean in context?
2. What does the y-intercept (0, 3) mean in context?
options: there is an increase of 4 million in revenue for every 1 unit sold
when 0 units are sold, the revenue is 3 million
there is an increase of 1 million in revenue for every 4 units sold
when 3 units are sold, the revenue is 0 million
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1. The slope of 1/4 means that for every unit increase in the number of units sold, the revenue increases by 1/4 of a million (or $250,000).
2. The y-intercept (0, 3) means that when no units are sold, the revenue is 3 million dollars.
The slope of 1/4 means that for every unit increase in the number of units sold, the revenue increases by 1/4 of a million (or $250,000).
1/4 is not an option
I apologize for the confusion. Given that 1/4 is not an option, the interpretation of the slope of 1/4 would be:
There is an increase of 1 million in revenue for every 4 units sold.