Aurora Town Museum is a small town historical and cultural museum specializing in artifacts from early settlers and local residents. The town council is interested in understanding the costs of the museum given the other demands on the limited funds. After collecting data from the past year and talking to some of the museum volunteers, the town treasurer decides that costs are driven primarily by attendance (customer visits) at the museum. A regression analysis was completed with the following results:

Required

a. In a regression equation expressed as y = a + bx, how is the letter y in the regression equation best described?

b. How is the letter x in the regression equation best described?

c. How is the letter b in the regression equation best described?

d. What is the percentage of the total variance that can be explained by the regression equation?

e. Based on the data derived from the regression analysis, what are the estimated costs for 600 visits in a month?

Transcribed Image Text:

Average monthly visits... Average monthly museum costs Regression results: Intercept...... b coefficient... R²..... 326 $3,086 $ 2,070 $ 3.12 0.7853