A Manager Wishes to Predict the Annual Cost (Y)of an Automobile

question 5

Multiple Choice

A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = 2,000 + 0.42x. If a car is driven 15,000 miles,the predicted cost is ____________.

• A) 2,090
• B) 17,000
• C) 8,400
• D) 8,300
• E) 6,300

---

Definitions:

Entry Posted

The action of recording an accounting entry in the ledger, which finalizes the transaction and makes it part of the financial records.

Debit

A bookkeeping record that causes assets to go up or liabilities to go down on a firm's balance sheet.

Equipment

denotes tangible assets used in operations, such as machinery or office equipment, which have a useful life beyond one accounting period.

Liability

A company's financial debt or obligations that arise during the course of its business operations.