Question

6. A company builds a model of its earning, and finds that its profit fits the linear model()=5―2500 Where p is the profit in dollars and q is the quantity of its product sold. a) Explain what the slope and y-intercept mean in the context of the problem. Be specific and answer in complete sentence. (2 points)

Answer 1

The slope of 5 means that for each product sold, the profit increases by 5, and the intercept of -2500 means that if no products are sold, the company loses 2500.

Explanation:

Linear function:

A linear function has the following format:

`y = mx + b`

In which m is the slope, that is, by how much y changes for each unit of x, and b is the y-intercept, which is the values of y when x = 0.

In this question:

`p(q) = 5q - 2500`

p is the profit in dollars and q is the quantity of its product sold.

a) Explain what the slope and y-intercept mean in the context of the problem.

The slope of 5 means that for each product sold, the profit increases by 5, and the intercept of -2500 means that if no products are sold, the company loses 2500.