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Question 540680: Regression equation for the profit of a new e-reader:
Profit = $0.15 x number of e-readers sold - $28
values given in thousands
If the company does not sell a single e-reader, how much is lost? Mathematically, what is this value called in the equation?
I appreciate any help you can give me. I've never taken algebra before and I am so lost. Thank you
Answer by KMST(5328)   (Show Source):
You can put this solution on YOUR website! I imagine that the values given in thousands are the profit and the numbers 0.15 and 28.
If the number of e-readers they sell is 0 (zero),
Profit = $0.15 x 0 - $28 = $0.00 - $28 = -$28
They lose 28 thousands ($28,000).
The equation is a linear equation, graphed as a straight line with profit (in thousands) on the y-axis and number of e-readers sold on the x-axis. The point for zero readers sold is on the y-axis (the x=0 line), so it is where the line intercepts the y-axis. That point is the y-intercept and the value for y (profit) at that point is called the intercept in the linear equation.
EXTRA INFORMATION
The 0.15 coefficient of the independent variable (number of readers sold, or x) is called the slope.
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