Answer:
Rate of change for the linear relationship modeled is
Step-by-step explanation:
As the there is a linear relationship in the points, so all these points will be on a single straight line. Hence the slope will be same throughout all the points.
We know that, the slope of the line joining (x₁, y₁) and (x₂, y₂) is,
Putting the points as (-1, 10) and (1, 9), we get
Rate of change is the slope of the line joining all these points.
Since represents the number of years passed since 2005, in 2005 we have
, and in 2015 we have
. Let
represent the profits of Jones and Davis, respectively, at year y.
We have
Choosing the best company somehow depends on how much time you can wait: Jones start with a higher value (10 vs 8), but it has a descending trend, because the multiplicative factor goes to zero as t grows.
On the other hand, Davis starts with a smaller value, but tends to infinity as t grows.
So, if you need an immediate result, the most valuable company is Jones, otherwise you're certain can Davis will eventually become bigger.
More precisely, we have
So, after 11 years, Davis will overcome Jones.