Use a Graphing Utility to Find the Equation of the Line

question 230

Multiple Choice

Use a graphing utility to find the equation of the line of best fit. Round to two decimal places, if necessary.
- $\begin{array}{l|lllll}\mathrm{x} & 0 & 3 & 4 & 5 & 12 \\\hline \mathrm{y} & 8 & 2 & 6 & 9 & 12\end{array}$

• A) \(y = 0.63 x + 4.88\)
• B) \(y = 0.53 x + 4.88\)
• C) \(y = 0.73 x + 4.98\)
• D) \(y = 0.43 x + 4.98\)

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Definitions:

Scenario Analysis

A method of evaluating potential future scenarios by contemplating various possible results, often used for strategic planning purposes.

Simulation Analysis

A statistical method that involves running multiple scenarios of a model in order to estimate the probability of different outcomes.

Sensitivity Analysis

A financial modeling tool used to evaluate how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.