Two Models $R _ { 1 } = 7.21 + 0.58 t$

question 71

Multiple Choice

Two models, $R _ { 1 } = 7.21 + 0.58 t$ and $R _ { 2 } = 7.21 + 0.43 t$ , are given for revenue (in billions of dollars per year) for a large corporation. Both models are estimates of revenues for 2007 through 2011, with t = 7 corresponding to 2007. Which model is projecting the greater revenue? How much more total revenue does that model project over the five-year period?

• A)The model \(R _ { 1 }\) projects greater revenue than \(R _ { 2 }\) . \(\$ 8.75\) billion
• B)The model \(R _ { 2 }\) projects greater revenue than \(R _ { 1 }\) . \(\$ 7.75\) billion
• C)The model \(R _ { 1 }\) projects greater revenue than \(R _ { 2 }\) . \(\$ 6.75\) billion
• D)The model \(R _ { 1 }\) projects greater revenue than \(R _ { 2 }\) . \(\$ 10.75\) billion
• E)The model \(R _ { 2 }\) projects greater revenue than \(R _ { 1 }\) . \(\$ 16.75\) billion

---

Definitions:

Corporate Veil

A legal concept that separates the identity and responsibilities of a corporation from those of its shareholders, protecting them from personal liability in most cases.

Promoter

An individual or company responsible for organizing and starting a business or enterprise, often involved in its early financing and establishment.

Subscriber

An investor who agrees to purchase stock in a new corporation.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and typically the right to vote on corporate matters.