Exhibit 1A-7 Straight Line Relationship

question 100

Multiple Choice

Exhibit 1A-7 Straight line relationship

Using the relationship shown in Exhibit 1A-7, suppose the price of air travel increases. How would you revise the graph to show this change?

• A) Draw a new point on the graph upward and to the left.
• B) Draw a new point on the graph downward and to the right.
• C) Draw a new line on the graph.
• D) Change the current line so that its slope is flatter.

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Definitions:

Expected Value

An average value determined by weighing all potential outcomes of a random variable according to their likelihood of happening.

Payoffs

The returns or benefits received from a particular course of action or decision, often evaluated in decision-making processes.

Invest

Allocating resources, usually money, with the expectation of generating an income or profit.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life, often associated with the material worth of its components.