Consider the Following to Answer the Question(s) Below

question 26

Multiple Choice

Consider the following to answer the question(s) below:
A study was recently performed by the Canada Revenue Agency to determine how much tip income waiters and waitresses would make based on the size of the bill at the table. A random sample of bills and resulting tips was collected. These data and regression results are as follows:

-Based upon the regression equation = -0.6684 + 0.2128x, what is the predicted value for tips if the total bill is $100?

• A) $20.61
• B) $26.03
• C) $15.55
• D) $12.88
• E) $21.28

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Definitions:

Price Ceilings

Price controls that outlaw trade at prices above the ceiling.

Intended

Something that is planned or meant to happen in a specific way.

Price Floors

Price controls that outlaw trade at prices below the floor.

Intended

Designed or planned to serve a particular purpose.