Question
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:
- Run a linear regression to describe the relationships among the variables.
- 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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