As the regional manager of a pizza franchise business, you are interested in und

Question

As the regional manager of a pizza franchise business, you are interested in understanding how income in a region affects pizza sales. Below is a regression output for pizza sales (in thousands of dollars) regressed on the average household income of an area (also in thousands of dollars) Linear Fit Pizza Sales 2.9047619 Income 14.577381 + Summary of Fit RSquare RSquare Adj Root Mean Square Error 3.1083 Mean of Response Observations (or Sum Wgts) Analysis of Variance 0.96832 0.96304 43.625 Sum of DF Source Model Error C. Total Parameter Estimates Term Intercept Income (S000) 2.9047619 0.214495 13.54 F 6 t 14.577381 2.410088 6.05 0.0009* What is the interpretation of the slope? (Choose one) OFor each $1,000 increase in average household income, pizza sales increase by $2.90 For each $2,905 increase in average household income, pizza sales increase by $1000 OFor each $1,000 increase in average household income, pizza sales increase by $2905 For each dollar increase in average household income, pizza sales increase by $14.58 None of the above

Explanation / Answer

Option C is correct

Here the slope is 2.90, so for every $1000 increase in this, sales increase by $2905

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