Suppose the sales (1000s of $) of a fast food restaurant are a linear function of the number of competing outlets within a 5 mile radius and the population (1000s of people) within a 1 mile radius. The regression equation quantifying this relation is (sales) = 1.306*(competitors) + 5.22*(population) + 8.766. What would you expect the sales (in 1000s of $) to be of a store that has 5 competitors and a population of 14 thousand people within a 1 mile radius?

Question 10 options:

1)88.376

2)53.15

3)70.844

4)79.61

5)We do not know the observations in the data set, so we cannot answer that question.