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.

---

Definitions:

Balance Sheet

A financial record that outlines the value of a company's assets, its liabilities, and the equity belonging to investors, at a particular time.

Financial Statement Items

These are line items or components found in financial statements like the balance sheet, income statement, and cash flow statement, representing financial performance and position.

Decreases

Represents a decline in quantity, value, or quality of an asset, revenue, or any other financial element.

Individual Accounts

Personal financial accounts held by an individual, such as savings, checking, or retirement accounts, distinct from joint or business accounts.