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

question 84

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 20,000 miles,the predicted cost is ____________.

• A) 10,400
• B) 20,000
• C) 2,840
• D) 6,200
• E) 6,750

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Definitions:

Redemption

The buying back of one’s property after it has been sold. The right to redeem property sold under an order or decree of court is purely a privilege conferred by, and does not exist independently of, statute.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Bankruptcy Petition

A formal request filed by an individual or entity seeking the protection of bankruptcy laws to resolve insolvency issues.

Chapter 7

Chapter 7 refers to a chapter of the U.S. Bankruptcy Code, under which individuals or businesses can liquidate their assets to pay off creditors.