An 8th Grade Class Develops a Linear Model That Predicts

question 68

Multiple Choice

An 8th grade class develops a linear model that predicts the number of cheerios (a small round cereal) that fit on the
circumference of a plate by using the diameter in inches. Their model is = 0.56 + 5.11 (diameter )
-The slope of this model is best interpreted in context as…

• A) For every 1 inch of diameter, the circumference holds about 0.56 more cheerios.
• B) A mistake, because π is about 3.14 and that should be the slope.
• C) For every 1 inch of diameter, the circumference holds about 5.11 more cheerios.
• D) For every 5.11 inches of diameter, the circumference is about 1 cheerio bigger.
• E) It takes 5.11 cheerios to fill a plate's circumference.

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Definitions:

Contribution Margin Ratio

A financial metric that represents the portion of sales revenue that is not consumed by variable costs and can contribute to covering fixed costs.

Break-Even Point

The point at which total costs equal total revenue, resulting in no profit but also no loss.

Mixed Costs

Expenses that contain both variable and fixed cost elements, changing in total with the level of activity but not in direct proportion.

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.