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Question
Answer:
Answer
Choice D
Company 2 is greater in avg rate of change by $750

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Explanation:

Average rate of change is the same as slope through two points. The two points are the endpoints of the interval. 

The x values we'll use is x = 0 and x = 12 since it constitutes the first 12 years (12-0 = 12)

For company 1, if x = 0 and x = 12, then y = 12000 and y = 30000 respectively. The two points (0,12000) and (12,30000) are on the graph for company 1
The slope of the line through these two points is
m = (y2-y1)/(x2-x1)
m = (30000-12000)/(12-0)
m = 18000/12
m = 1500
Over the first twelve years, the average rate of change for company 1 is 1500

For company 2, the points (0,15000) and (12,42000) are on the graph
The slope of the line through these two points is
m = (y2-y1)/(x2-x1)
m = (42000-15000)/(12-0)
m = (27000)/(12)
m = 2250
Over the first twelve years, the average rate of change for company 2 is 2250

Now find the difference in the slopes
2250-1500 = 750

Company 2's rate of change is larger by $750
So that's why the answer is choice D. Over this timespan, company 2 is growing faster on average compared to company 1

solved
general 11 months ago 2611