Brewsky's Is a Chain of Micro-Breweries -
Based on the Data Derived from the Regression Analysis

question 68

Multiple Choice

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:
$\begin{array}{llr} \text { Average monthly customer visits } &&1,462\\ \text { Average monthly total costs } &&\$4,629\\& \text { Regression Results} &\\ \text { Intercept } &&\$1,496\\ \text { b coefficient } &&\$2.08\\ \text { R }^{2} &&0.86814\\\end{array}$

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Based on the data derived from the regression analysis, what are the estimated costs for 1,600 customer visits in a month? (CMA adapted)

• A) $6,125.
• B) $4,629.
• C) $3,328.
• D) $4,824.

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