Question

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)

Answer 1

`Sales = 86.749`

Explanation:

Given

`Sales = 0.845*(competitors) + 5.79*(population) + 13.889`

`Competitors = 4`

`Population = 12000`

See comment for complete question

Required

The sales

We have:

`Sales = 0.845*(competitors) + 5.79*(population) + 13.889`

Substitute values for competitors and population

`Sales = 0.845*4 + 5.79*12 + 13.889`

`Sales = 3.38 + 69.48 + 13.889`

`Sales = 86.749`