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

question 12

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 x in the regression equation best described? (CMA adapted)

• A) Fixed costs per each customer-visit.
• B) The observed store costs for a given month.
• C) The estimate of the number of new customer visits for the month.
• D) The observed customer visits for a given month.

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Definitions:

Capital Flow

The movement of money for the purpose of investment, trade, or business production between countries or within a country.

Documentary Letter

A type of credit instrument issued by a bank guaranteeing a seller's payment from a buyer upon presenting specified documents.

Correspondent Bank

A bank that provides services on behalf of another, typically foreign, bank, including currency exchange and handling international transactions.

European Community

A group of European countries that participated in an economic and political union to promote integration and cooperation.