Question

Only 10 True or False questions. Please answer ALL questions. Thank you!

1) It is always the case that P(x) (profit), R(x) (revenue), and C(x) (costs) are best modeled by linear equations.

2) If you collect data on 2 variables x & y, and then you draw a scatter plot of the ordered pairs (x,y), the variables show positive correlation if the scatter plot decreases as you move from left to right.

3) To determine the break even point for a company, take the revenue equation R(x), set it equal to the cost equation C(x), and then solve for x.

4) To determine the market equilibrium point, set the supply equation equal to the demand equation and then solve.

5) If the supply & demand equations are modeled by linear functions, the supply equation has a negative slope & the demand equation has a positive slope.

6) When looking at statistics related to MLB teams, we determined that the number of team wins is negatively correlated with attendance numbers at home games for the team.

7) In a linear revenue equation, the slope of the revenue equation is equal to the marginal revenue.

8) In a linear cost equation, the marginal cost is equal to the variable cost per unit.

9) If you have a linear equation which models the yearly depreciation schedule for a machine, the slope of the equation represents the amount of money that the machine depreciates by in 12 months time & the y-intercept represents the purchase price of the machine.

10) In a linear cost function C(x), its slope represents the variable costs per unit and the y-coordinate of the y-intercept denotes the fixed costs.

Answer 1

1) It is always the case that P(x) (profit), R(x) (revenue), and C(x) (costs) are best modeled by linear equations.	TRUE	The linear equation is P(x) = R(x) - C(x),
2) If you collect data on 2 variables x & y, and then you draw a scatter plot of the ordered pairs (x,y), the variables show positive correlation if the scatter plot decreases as you move from left to right.	FALSE	If the ordered pairs (x,y), running from lower left to upper right,when an increase in the independent variable is accompanied by an increase in the dependent variable there is a positive correlation (if x increases, y increases).
3) To determine the break even point for a company, take the revenue equation R(x), set it equal to the cost equation C(x), and then solve for x.	TRUE	The breakeven point occurs where profit is zero or when revenue equals cost
4) To determine the market equilibrium point, set the supply equation equal to the demand equation and then solve.	TRUE	The pric at which demand and supply curves intersect is called the equilibrium price
5) If the supply & demand equations are modeled by linear functions, the supply equation has a negative slope & the demand equation has a positive slope.	FALSE	The demand curve has a negative slope, meaning it slopes down and to the right. The supply Curve has a positive slope , meaning it slopes up and to the right.
6) When looking at statistics related to MLB teams, we determined that the number of team wins is negatively correlated with attendance numbers at home games for the team.	FALSE	there is a positive correlation on attendance and home team performance
7) In a linear revenue equation, the slope of the revenue equation is equal to the marginal revenue.	TRUE	Marginal revenue is directly related to total revenue because it measures the change in the total revenue with respect to the change in another variable
8) In a linear cost equation, the marginal cost is equal to the variable cost per unit.	FALSE	Marginal cost equals the change in total (or variable) cost that comes with each additional unit produced.
9) If you have a linear equation which models the yearly depreciation schedule for a machine, the slope of the equation represents the amount of money that the machine depreciates by in 12 months time & the y-intercept represents the purchase price of the machine.	TRUE	The slope represents the amount by which it depreciates each year. intercept when t = 0 is the initial value or original value of the computer.
10) In a linear cost function C(x), its slope represents the variable costs per unit and the y-coordinate of the y-intercept denotes the fixed costs.	TRUE	The equation of a line with slope m and y-intercept b written as y = mx + b.