Brewsky's Is a Chain of Micro-Breweries In a Regression Equation Expressed as Y = a

question 39

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:
$$\begin{array} { | l | r | } \hline \text { Average monthly c ustomer-visits } & 1,462 \\\hline \text { Average monthly total costs } & \$ 4,629 \\\hline \text { Regression Results } & \\\hline \text { Intercept } & \$ 1,496 \\\hline \text { bcoefficient } & \$ 2.08 \\\hline R ^ { 2} & 0.86814 \\\hline\end{array}$$
In a regression equation expressed as y = a + bx,how is the letter b best described? (CMA adapted)

• A) An estimate of the probability of return customers.
• B) The fixed costs per customer-visit.
• C) The estimate of the cost for an additional customer visit.
• D) The proximity of the data points to the regression line.

---

Definitions:

Significance Levels

A threshold chosen by the researcher which determines the probability of rejecting a true null hypothesis, often denoted by alpha (α).

Major Defects

Significant flaws or imperfections in a product or system that can affect its functionality or performance adversely.

P-Value

P-Value is a statistical measure indicating the probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is true.

Extrasensory Perception

A claimed ability to gain information through means other than the known human senses.