Question 7 (1 point) Suppose the sales (1000s of $) of a fast food restaurant ar

Question

Question 7 (1 point)

Suppose the sales (1000s of $) of a fast food restaurant are a linear function of the number of competing outlets within a 5 mile radius and the population (1000s of people) within a 1 mile radius. The regression equation quantifying this relation is (sales) = 1.776*(competitors) + 6.17*(population) + 14.878. What would you expect the sales (in 1000s of $) to be of a store that has 3 competitors and a population of 14 thousand people within a 1 mile radius?

Question 7 options:

1)

2)

3)

4)

5)

1)

58.252

2)

91.708

3)

76.83

4)

106.586

5)

We do not know the observations in the data set, so we cannot answer that question.

Explanation / Answer

Given,

Competitors = 3

Population = 14 thousand

Hence,

Sales = 1.776(3) + 6.17(14) + 14.878

Sales = 106.586

Option 4 is correct.

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