Question

ashley calculates her salary (base and commission) for the year “y” using the model y= 0.2x + 25,000; where x represents her total sales for the year. what is the meaning of the y-intercept in the model?

Answer 1

The y-intercept in the model represents the base salary

Explanation:

In regression analysis, the y-intercept refers to the point where a regression line crosses or cuts the y-intercept. At this point, the value of the explanatory variable X is usually 0.

In the model, the explanatory variable x is Ashley's total sales for the year. On the other hand the dependent variable is the annual salary which depends on total sales.

Substituting x with 0 in the regression model yields;

y = 0.2(0) + 25,000

y = 25,000

The y-intercept is thus 25,000 which is simply the salary earned in the absence of sales. This is simply the basic salary.