PEV June 2008 Paper Q 1.3

Hi

I am trying to self teach myself the dreaded PEV, a subject I do not think that I will ever fully grasp.

I am working on the above paper and I have hit a wall on question 1.3.

The question gives an estimate on asphalt for the next 3 months.

The equation is Y = a + bX where

X is the time period in months
The value of X in May is 25
Y is the cost of asphalt
The constant "a" is 125 and constant "b" is 2

The cost of asphalt is set on the first day of each month and is not changed during the month. The cost of asphalt in May was £175 per tonne.

The answer shows that in June X = 26 and in July X = 27. Could someone kindly explain how that was ascertained, as I have got myself a bit muddled. No doubt it is easy and staring straight at me!!

Many thanks

Tracy

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    X is the time period in months
    The value of X in May is 25

    so subsequent months are:
    June 26
    July 27
    Sandy
    [email protected]
    www.sandyhood.com
  • columbia
    columbia Registered Posts: 580
    Wow, quickest answer ever!!

    Thanks Sandy, I assumed the time period had something to do with the 3 months.

    Is there anything leaping out in the question for me to know that the increase was 26 then 27 then I assume 28 etc????
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