A regression of total revenue on ticket sales determined by a concert production

Question

A regression of total revenue on ticket sales determined by a concert production company is given below. Complete parts a and b below. Revenue = -7, 310 + 31.08 middot Ticket Sales ^2 Click the icon to view a plot of the concert venue data. a) Management is considering adding a stadium-style venue that would seat 10,000. What does this model predict that revenue would be if the new venue were to sell out? Revenue = $ __________ (Type an integer or a decimal.) b) Why would it be unwise to assume that this model accurately predicts revenue for this situation? A. The model does not account for the price of the tickets. B. Tickets would not sell at the price required to attain this revenue. C. The model does not account for the cost of construction for the stadium. D. An extrapolation this far from the data is unreliable. Scatterplot and regression equation

Explanation / Answer

Revenue = -7310 + 31.08 * Ticket sales

Ticket ales = 10000

Expected Revenue = -7310 + 31.08 * 10000 = $ 3,03,490

(b) It is unwise because of option D becuase graph is limited to 3000 seats so extrapolation this far is too much to ask for.

(c)

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