Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brewsky's is a chain of micro-breweries. Managers are interested in the costs of the stores and believe that the costs can be explained in large

Brewsky's is a chain of micro-breweries. 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 and the analysis is as follows:

Average monthly customer visits 1,690
Average monthly total costs $ 4,914
Regression Results
Intercept $ 1,724
b coefficient $ 2.38
R2 0.89113

Based on the data derived from the regression analysis, what are the estimated costs for 1,500 customer visits in a month? (CMA adapted)

  • $3,570.

  • $5,294.

  • $6,638.

  • $4,914.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

6. Discuss the transformation of the HRM function.

Answered: 1 week ago

Question

7. Understand the challenges of multilingualism.

Answered: 1 week ago

Question

5. Give examples of variations in contextual rules.

Answered: 1 week ago