Question

Brewsky's is a chain of micro-breweries. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis and the analysis is as follows:

In a regression equation expressed as y = a + bx, how is the letter y best described?
a) An estimate of the total customers for the month.
b) The observed store cost for a given month
c) The estimate of the number of new customer visits for the month.
d) The proximity of the data points to the regression line.

Answer 1

b) The observed store cost for a given month

Step-by-step explanation:

As we know that

The regression equation should be expressed in

y = a + bx

So here the y denotes the cost of the observed store for the given month

That means it shows the total cost

So according to the given situation, the option b is correct

And, the same would be considered and relevant

Moreover, all other options would be incorrect