To estimate the net income for 46 customers, we use linear interpolation between the values for 45 and 50 customers. This yields an estimated net income of $31,240 when rounded up.
Linear interpolation can be used to estimate the net income for 46 customers since the relationship between the number of customers and net income appears to be linear.
Identify the two data points that bracket 46 customers. In this case, the data points for 45 and 50 customers bracket 46 customers.
Calculate the slope of the line connecting these two points.** Slope = (Change in net income) / (Change in customers) = ($53,800 - $25,600) / (50 customers - 45 customers) = $580 per customer.
Calculate the difference between 46 customers and the lower bracketed value (45 customers).** Difference in customers = 46 customers - 45 customers = 1 customer.
Multiply the slope by the difference in customers to estimate the change in net income.** Change in net income = $580 per customer * 1 customer = $580.
Add the change in net income to the net income of the lower bracketed value (45 customers).** Estimated net income for 46 customers = $25,600 + $580 = $26,180.
Since Excel rounds up, the approximate net income for 46 customers is $31,240.
Here is the table with the interpolated value:
| Customers per day | Net Income |
| 40 | $53,800 |
| 45 | $25,600 |
| 46 | $31,240 (interpolated) |
| 50 | $53,800 |
| 55 | $82,000 |
| 60 | $110,200 |
complete the question
When analyzing data in Excel, one must select the appropriate data for a given outcome. In the lookup table below, what would be the approximate net income for 46 customers, assuming Excel rounds up? Effect of Customers on Net Income Net Income Customers per day $ 53,800.00 40 25,600.00 45 53,800.00 50 82,000.00 55 110,200.00 60 138,400.00 Group of answer choices 110,200.00 82,000.00