Question

An insurance company profits by collecting premiums at the beginning of each month but pays claims over the remainder of the month. The scatterplot of the profit in millions of dollars on certain days since May \[1\]st is shown in the graph along with a trend line. Which of the following statements is true regarding the trend line?

Answer 1

The correct answer is: The profit decreases by approximately 1 million dollars every 5 days.

The trend line shows that the profit is decreasing over time. The slope of the trend line is negative, which means that the profit is decreasing by approximately 1 million dollars every 5 days. Therefore, the statement that is true regarding the trend line is:

The profit decreases by approximately 1 million dollars every 5 days.

The other answer choices are not supported by the data. There is no evidence to suggest that the profit will be 2 million dollars by the end of May, or that the profit is decreasing by 1 million dollars every 0.2 days. Additionally, the trend line shows that the profit is expected to decrease by more than 8 million dollars over the course of May.

Therefore, the correct answer is: The profit decreases by approximately 1 million dollars every 5 days.