Given the Following Linear Regression Model of Weekly Sales ($000's)

question 80

Essay

Given the following linear regression model of Weekly sales ($000's) in a fast food restaurant against number of vouchers printed in the local newspaper, interpret the intercept. Does this make sense?
Estimated Sales = 11.5676 + 0.4618.Vouchers

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Definitions:

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.

Direct Manufacturing Cost

The sum of all costs directly tied to the production process, including direct labor and raw materials.

Manufacturing Overhead

Costs incurred in the production process that are not directly associated with individual units, including indirect materials, labor, and utilities, vital for operational continuity.

Gross Margin

A company's revenue minus its cost of goods sold, indicating how efficiently a company uses labor and supplies in production.