Question

A salesperson earns a base salary of $50,000 plus a commission of $300 for every unit sold. Which type of model best fits this situation?

Answer 1

Linear model.

Explanation:

Let x be the number of units sold by salesperson.

We have been given that a salesperson earns a base salary of $50,000 plus a commission of $300 for every unit sold. So commission earned for x units will be 300x.

The total amount earned by salesperson after selling x units will be commission for x units plus base salary.

`\text{Total amount earned by salesperson}=300x+50,000`

We can see that the total income of salesperson is in slope-intercept form:
`y=mx+b`, where, m represents slope and b represents y-intercept.

Upon comparing the total income of salesperson with slope-intercept form of equation we can see that 300 is slope and 50,000 is y-intercept, therefore, a linear model will best fits the given situation.