The Figure Represents the Average Credit Card Debt for Selected

question 130

Essay

The figure represents the average credit card debt for selected households in Silerville. Let y represent the credit card debt in dollars. Let x represent the year, where x = 0 corresponds to the year 1990, x = 4 represents 1994, and so on.
a. Use the ordered pairs given in the graph, (0, 3299) and (16, 7415) to find a linear equation to estimate the average credit card debt versus the year. Round the slope to the nearest tenth.
b. Use the model from (a) to estimate the average debt in 2003. Round to the nearest dollar.
c. Interpret the slope of the model in the context of this problem.

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Definitions:

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete, often tracked for cost accounting purposes.

Cost of Goods Sold

The straight costs associated with producing the goods that a company sells, which include labor and materials.

Days' Payable Outstanding

A financial metric that calculates the average number of days it takes a company to pay its invoices from trade creditors.

Accounts Payable

The amounts a business owes to its lenders or suppliers for transactions involving goods and services bought on credit.