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KFC offers special value meal promotions periodically. Data has been collected at various price points. Let Y be the number of meals sold & X
KFC offers special value meal promotions periodically. Data has been collected at various price points. Let Y be the number of meals sold & X be the price.
Based on the following historical observations and calculations, determine the regression equation, correlation coefficient, and the coefficient of determination.
| Observations | Price (X) | Dinners Sold (Y) |
|---|---|---|
| 1 | $ 3.25 | 1255 |
| 2 | $ 4.50 | 950 |
| 3 | $ 6.25 | 752 |
| 4 | $ 7.00 | 623 |
| 5 | $ 4.25 | 955 |
| 6 | $ 4.00 | 1053 |
| 7 | $ 3.99 | 1101 |
| 8 | $ 4.99 | 897 |
| 9 | $ 5.99 | 819 |
| 11 | $ 2.99 | 1333 |
Based on your findings, answer the following questions:
- How many chicken value meals can they expect to sell at $5.50 each?
- If the cost of prepping a dinner is $1.50, at what price point do you maximize your profits?
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