We have a scatterplot showing the earnings in the last seven years.
In this case, we can use two points nearest to the line to find the line equation to find, then, the profit earned in 2013.
Looking at the graph, we can see that the points:
(2004, 330), and (2008, 285) are nearest to the line. Then, we can use the point-to-point form of the line equation as follows:
1. We can label each coordinate:
x1 = 2004
y1 = 330
x2 = 2008
y2 = 285
2. The line equation is:
[tex]y-y_1=\frac{y_2-y_1}{x_2-x_1}(x-x_1)[/tex]
Then
[tex]y-330=\frac{285-330}{2008-2004}(x-2004)[/tex]
Thus
[tex]y-330=\frac{-45}{4}(x-2004)\Rightarrow y-330=-11.25x+11.25\cdot2004[/tex][tex]y=-11.25x+22545+330\Rightarrow y=-11.25x+22875[/tex]
Now, we have the line equation.
To find the earnings of the store in 2013, will be:
Substitute the value of x = 2013. Then
[tex]y=-11.25\cdot(2013)+22875=-22646.25+22875=228.75[/tex]
Then, the nearest option is option A ($225 million).
