Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 1 - Section 1.4 - Linear Regression - Exercises - Page 103: 22b

Answer

The slope is $0.16$ (billion ${{\$}} $ of expenses) per (billion ${{\$}} $ in sales). For every increase of a billion dollars of net sales, Amazon has another ${{\$}} 0.16$ billion in expense.

Work Step by Step

The unit of slope in $y=mx+b$ is (unit of y) per (unit of x). The slope is calculated as (change in y)/(change in x). Here, $E=0.16S+0.2$ and the slope is $0.16$ (billion ${{\$}} $ of expenses) per (billion ${{\$}} $ in sales). So, for every increase of a billion dollars of net sales, Amazon has another ${{\$}} 0.16$ billion in expense.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.