A Study of Driving Costs of 1992 Model Subcompact (Four-Cylinder)

question 216

Short Answer

A study of driving costs of 1992 model subcompact (four-cylinder) cars found that the average cost (car payments, gas, insurance, upkeep, and depreciation), measured in cents/mile, is approximated by the function where x denotes the number of miles (in thousands) the car is driven in a year. What happens to the average cost as the number of miles driven increases without bound? Express your answer to the nearest tenth, if necessary.
It approaches __________ .

---

Definitions:

Negatively Skewed

Refers to a distribution that is asymmetrical and has a longer tail on the left side of the peak, indicating more values fall below the mean.

Standard Deviation

A statistical measure representing the dispersion or variability of a set of data points from their mean, often used in finance to gauge the volatility of an investment.

Effective Annual Rate

The interest rate on an investment or loan, annualized and taking into account the effects of compounding within the year.

Quarterly Return

The financial performance of an investment or asset over a three-month period, typically expressed as a percentage.