D Co forecasts costs using the model y = a + bx. The intercept is $20. When y = $270 then x = 50.
What is the value of the gradient?
The correct answer is: 5
The point at which the straight line crosses the y axis is the intercept and this is the value of a. The gradient is b.
y
= a + bx
$270
= $20 + (b x 50)
$270 - $20
= 50b
= b
= 5
b
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