Fundamentals of Compensation Quantitative Methods

Example of equations

You have seen that a 60-year-old typist scored 100, while a 20-year-old typist scored 50 on a typing test. Calculate the equation for the line that passes through these points.

First you find the slope:

slope = (y2 - y1) / (x2 - x1)

slope = (50 - 100) / (20 - 60)

slope = -50 / -40

slope = 1.25

Now plug this slope plus one of the points into the straight-line equation to find b, the y-intercept:

y = mx + b

100 = 1.25(60) + b

100 = 75 + b

b = 25

The equation of the straight line that passes through (60,100) and (20,50) is:

y = 1.25x + 25

To check, plug in the numbers from the second point on the line:

y2 = b + mx2

50 = 25 + (1.25 x 20)

50 = 50

Correct!

Memory Jogger

Find the equation of a line with a slope of 3 that passes through the point (2,1):

Continue