Final answer:
The correct equation to model the auto repair shop's charges is y = 40x + 125, which reflects a $40 hourly rate and a flat $125 examination fee.
Step-by-step explanation:
The question requires writing an equation in slope-intercept form to model the charges of an auto repair shop that has a flat examination fee and a variable hourly charge. The slope-intercept form of a linear equation is given by y = mx + b, where 'm' stands for the slope, representing the hourly charge, and 'b' is the y-intercept, representing the initial examination fee.
For the given scenario, the slope (m) is the cost per hour to work on the vehicle, which is $40, and the y-intercept (b) is the flat fee to examine the vehicle, which is $125. Therefore, the correct equation is y = 40x + 125. This means Option 1 is the right choice.