Suppose the sales (1000s of $) of a fast food restaurant are a linear function o

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) = 1.645*(competitors) + 6.187*(population) + 5.455. Suppose the sales (in 1000s of $) to be of a store that has 2.934 competitors and a population of 5.157 thousand people within a 1 mile radius are 52.335 (1000s $). You calculate the residual to be -10.147. What is the best interpretation of this residual?

Question 29 options:

1)

2)

3)

4)

5)

1)

The number of competitors are 10.147 stores larger than what we would expect.

2)

The sales are 10.147 (1000s $) greater than what we would expect.

3)

The sales are 10.147 (1000s $) less than what we would expect.

4)

The number of competitors are 10.147 stores less than what we would expect.

5)

The sales are 52.335 (1000s $) less than what we would expect.

Explanation / Answer

(sales) = 1.645*(competitors) + 6.187*(population) + 5.455

Suppose the sales (in 1000s of $) to be of a store that has 2.934 competitors and a population of 5.157 thousand people within a 1 mile radius are 52.335 (1000s $)

the residual to be -10.147

The sales are 10.147 (1000s $) less than what we would expect.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.