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16 June, 07:47

Given that spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict household spending with a model y=b+mx, where

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  1. 16 June, 07:51
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    With the straight line equation, we can assume y = household spending, x is the income earned monthly, and b would be the base amount spent per month ($1000). m = 1/2 of the income that is spent (additional spending).

    Therefore our equation takes shape as follows:

    y = 1/2 ($income) + $1000
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