Question

What was the loss in value during the first year

Answer 1

To find the loss values we have to find the equation of the line .

The slope is given by:

`m=(y_2-y_1)/(x_2-x_1)`

We are going to take the points:

(2 , 6) and (5 , 3)

Notice that both points are part of the graph.

Replacing:

`m=(3-6)/(5-2)=(-3)/(3)=-1`

The slope is equal to -1.

Now, the equation of the line in the slope-intercep form is given by:

`y=mx+b`

Replacing the point (2 , 6) and the slope m=-1 to find the y-intersect (b):

`\begin{gathered} 6=-1*2+b \\ b=6+2=8 \end{gathered}`

The equation of the line is:

`y=-x+8`

Finally, we are going to find the loss during the first year, it means x=1. Substituing:

`y=-1+8=7`

Answer: The loss during the first year was 7 thousands of dollars.