Question

One study found that one star's worth of improvement on Yelp leads on average to an increase of between 5 and 9percent in revenue. For a restaurant with revenue of $500,000, how much is a one star improvement worth (in additional revenue) if you usethe middle of the range, 7%?a) $30,000b) $35,000c) $40,000 d) $45,000

Answer 1

Step 1: we need to find the value of 7% of $500,000.

Using the middle of the range, that is, 7% of $500,000. we have,

`\begin{gathered} 7\text{ \% of 500,000} \\ =(7)/(100)*500000 \\ =7*5000=\text{ \$35,000} \end{gathered}`

Therefore, the correct answer is $35,000 (option B)