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3) Manooch is trying to forecast the number of customers based on the average price of his pizzas. He has been tracking the relationship between
3) Manooch is trying to forecast the number of customers based on the average price of his pizzas. He has been tracking the relationship between the number of customers and the average price of the pizzas over the past five weeks.
He has run a regression and obtained the following values: a= 3.749, b = - 0.170, r = 0.98, R2 = 0.95.
Calculate the number of customers if he sets the average pizza price at $10.50.
\begin{tabular}{|l|l|} \hline Number of customers ('000) & Average price (\$) \\ \hline 1 & 16 \\ \hline 1.2 & 15 \\ \hline 1.4 & 14 \\ \hline 1.8 & 12 \\ \hline 1.8 & 11 \\ \hline \end{tabular}Step by Step Solution
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