What is the Estimate 823 - 242
2 answers:
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Answer:
The best fit is <em>A. Linear model</em>
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Step-by-step explanation:
Given:
Monthly Rate = $20, Number of customers = 5000
If there is a decrease of $1 in the monthly rate, the number of customers increase by 500.
To find:
The type of model that best fits the given situation?
Solution:
Monthly Rate = $20, Number of customers = 5000
Let us decrease the monthly rate by $1.
Monthly Rate = $20 - $1 = $19, Number of customers = 5000 + 500 = 5500
Let us decrease the monthly rate by $1 more.
Monthly Rate = $19 - $1 = $18, Number of customers = 5500 + 500 = 6000
Here, we can see that there is a <em>linear change </em> in the number of customers whenever there is decrease in the monthly rate.
We have 2 pair of values here,
x = 20, y = 5000
x = 19, y = 5500
Let us write the equation in slope intercept form:
Slope of a function:
So, the equation is:
Putting x = 20, y = 5000:
Let us check whether (18, 6000) satisfies it.
Putting x = 18:
so, it is true.
So, the answer is:
The best fit is <em>A. Linear model</em>