Brewsky's Is a Chain of Micro-Breweries How Is the Letter Y in the Regression Equation Best

question 28

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:
$$\begin{array} { | l | r | } \hline \text { Average monthly c ustomer-visits } & 1,462 \\\hline \text { Average monthly total costs } & \$ 4,629 \\\hline \text { Regression Results } & \\\hline \text { Intercept } & \$ 1,496 \\\hline \text { bcoefficient } & \$ 2.08 \\\hline R ^ {2 } & 0.86814 \\\hline\end{array}$$

How is the letter y in the regression equation best described? (CMA adapted)

• A) An estimate of the total customers for the month.
• B) The observed store cost for a given month.
• C) The estimate of the number of new customer visits for the month.
• D) The proximity of the data points to the regression line.

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Definitions:

Implicit Association Test

A psychological tool designed to measure a person's automatic and unconscious associations between different concepts.

Awareness

The state of being conscious or cognizant of something, including one's surroundings, feelings, or facts.

Shyness

A feeling of apprehension, lack of comfort, or awkwardness especially when a person is around other people, often characterized by a tendency to avoid social interactions.

Implicit Association Test

A psychological test designed to uncover unconscious or hidden biases by measuring the strength of associations between concepts.