The Manager of a Local Shopping Mall Uses Simple Linear

question 25

Multiple Choice

The manager of a local shopping mall uses simple linear regression to develop an equation that predicts the number of daily shoplifting incidents at the mall's stores based on the number of security guards employed.The manager uses the following data: The slope of the regression line is b = -1.2; the intercept of the regression line is a = 14.5.
Use the results of the regression analysis to produce a 95% prediction interval for the expected number of shoplifting incidents on a particular day when there are 5 security guards on duty.Based on the prediction interval, complete the following sentence:
With 95% confidence, the predicted number of shoplifting incidents on a particular day when there are 5 security guards on duty is between ______ and ______.

• A)-2.7, 19.4
• B)2.3, 14.4
• C)6.24, 10.36
• D)7.7, 8.9

---

Definitions:

Table: Price Elasticity

A tabulated representation that shows how the quantity demanded of a good or service responds to changes in its price, indicating the sensitivity of consumers to price changes.

Midpoint Formula

A method used in economics and mathematics to calculate the average of two points on a line, often employed to find the elasticity of demand.

Chocolate-Covered Peanuts

Peanuts that have been coated in chocolate, serving as a sweet and crunchy snack.

Total Revenue

The total value of sales of a good or service (the price of the good or service multiplied by the quantity sold).