Answer:
The y-intercept in the model represents the base salary
Step-by-step explanation:
In regression analysis, the y-intercept refers to the point where a regression line crosses or cuts the y-intercept. At this point, the value of the explanatory variable X is usually 0.
In the model, the explanatory variable x is Ashley's total sales for the year. On the other hand the dependent variable is the annual salary which depends on total sales.
Substituting x with 0 in the regression model yields;
y = 0.2(0) + 25,000
y = 25,000
The y-intercept is thus 25,000 which is simply the salary earned in the absence of sales. This is simply the basic salary.
