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Annabelle plans to open a restaurant in town. At this moment, she is deciding on the location and the seating capacity. She collected data on

Annabelle plans to open a restaurant in town. At this moment, she is deciding on the location and the seating capacity. She collected data on several local restaurants to help her make these decisions. The data contains, for each restaurant, the average weekly profit (in $1,000), the seating capacity, and the average daily traffic (in thousands of cars) that passes the location.

Seating capacity

Traffic count

Weekly profit

x_1

x_2

y

120

19

23.8

200

8

24.2

150

12

22

180

15

26.2

240

16

33.5

80

11

16

95

9

13

130

14

24

Questions:

  1. Run a linear regression to describe the relationships among the variables.
  2. Annabelle has two candidate choices of restaurant described below. Based on the regression model in part a), estimate the weekly profit if either of the following is chosen.

Option

Seating capacity

Traffic count

x_1

x_2

A

220

13

B

145

18

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