Question:
Use linear equation to fit given data
Find the slope of the line shown and interpret the slope as a rate of change given the following information. I am supposed to present this in business terms using Exxon Mobile as the example and using the mathematical concept of slope and rate of change. After submitting this question earlier I am not sure the answer is what I need. I know that the formula for slope is
m= slope = rise/run = change in y-coordinate/change in x-coordinate. I would like to re-address this.
The information and previous answer is as follows:
Year Revenue(Million Dollars)
2005 358955
2006 365467
2007 390328
2008 459579
2009 301500
The equation of the least square line for Revenue (in million dollars) (y) versus Year (x) is given as follows: y=32673.3x - 65165394.2
(a) The slope of the line is given as 32673.3.
(b) The rate of change of Revenue (in million dollars) per Year is given as 32673.3.
The positive sign of the slope indicates a direct relationship between Revenue (in million dollars) and Year. In other words, Revenue (in million dollars) increases by a factor of 32673.3 per year.