Brews 4 U is a local chain of coffee shops. 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.
Average monthly customer-visits . . . . . . . . . . 1,462
Average monthly total costs . . . . . . . . . . . . . . $ 4,629
Regression results:
Intercept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,496
Be coefficient . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.08
R2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.86814
Required
a. In a regression equation expressed as y = a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 1,600 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?