Fit a linear trend to the operating income. If you accept the fit of this equati
ID: 2929931 • Letter: F
Question
Fit a linear trend to the operating income. If you accept the fit of this equation, interpret the slope and intercept.
Estimated Operating Income (millions of
$) = - 710,100 + 367 Date
If you accept the fit of this equation, interpret the slope and intercept. Choose the correct answer below.
A. The fit of this equation is not accepted because the pattern is not linear. Therefore, the slope and intercept should not be interpreted.
B. The slope is the expected operating income at year 0. For every year that passes, the operating income of the business is expected to increase by approximately the intercept (in millions of $).
C. The fit of this equation is not accepted because the pattern is linear. Therefore, the slope and intercept should not be interpreted.
D. For every year that passes, the operating income of the business is expected to increase by approximately the slope (in millions of $). The intercept is the expected operating income at year 0.
Explanation / Answer
Ans:
Option D is correct.
D. For every year that passes, the operating income of the business is expected to increase by approximately the slope (in millions of $). The intercept is the expected operating income at year 0.
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