Question

Using your simple linear regression​ model, what is the value for the slope for this regression​ model?

Take a Test-Mohammad (2) Exploring bivariatenu x+ Nick James . YouTube × Co https://www.mathxl.com/Student/PlayerTest.aspx?tesA 11 □ Bunnings Canvas晏Fisher Library Study dates Other bookmarks 21 BUSS1020 Quantitative Business Analysis Nurullah | 5/30/19 4:13 AM Test: Assignment 2 This Question: 1 pt 6 af 20 This Test: 20 pts possible A national restaurant chain is composed of 6500 restaurants, sach of which is located in close proximity to an interstate highway. The restaurant's business strategy is to serve its core customer base people travelling on the interstate highway system who are looking for a quality dining experience Customers gengrally enjoy the restaurant chain's menu, atmosphere, and consistency from restaurant to restaurant The company's leadership, located at corporate headquarters, is very interested in the relationship between the cost of a gallon of gasoline and the company's revenue Speaifically, the company is concemed that if gasoline prices rise in the near future, the company's revenue wil decine dramatically. The company's research department recently collected data for analysis in order to support leadership's upcoming discussion of whether the company should expand and diversity to locations away from an interstate highway. Annual revenue figures from a random sample of 150 restaurants were collected The research divisian also collected and calculated the average annual cost of gasoine at these 150 restaurants by randomly selecing three gasoline stations near each restaurant Histcricall data was then used to calculate the average annual cost of gasoline. The Restaurant Number, Geographic Region, Annual Revenue, Average Cast of Gasoline, Miles from the Interstate, Square Footage and Annual Increase in Revenue were collected for these 150 restaurants Corporate headquarters wants to create a simple linear regression model to predict a restaurant's annual revenue using the average cost of gasoline. First create a scatterplot using Average Cost of Gasoline as the independent variable and Annual Revenue as the dependent variable. After performing a visual analysis of the scatterplot, fappropriate, construct a simple Iinear regression model using the average cost of gasoline to predict a restaurant's annual revenue Using your simple inear regression model, for every one-cent increase in the cost of a galon of gasoline, how much would one predict the restaurants annual revenue to decrease? $5949242.86 (Round to two decimal places as needed) Take a Test - Mohammad x (2) Exploring bivariate nu x+ Nick James-YouTube ayerTest.aspx?tes.. Q ☆ O ← → C 0- https://www.mathxl.com/Student/Pl Bunings Cs Fisher Canvas Fisher Library Study dates Other bookmarks BUSS1020 Quantitative Business Analysis Mohammad Nurullah5/30/19 4:13 AM Test: Assignment 2 Submit Test 7 of 20 This Question: 1 pt This Test: 20 pts possible A national restaurant chain is composed of 6500 restaurants, each of which is located in close proximity to an interstate highhway. The restaurants business strategy is to serve its core customer base: people traveling on the interstate highway system who are looking for a quality dining experience. Customers generally enjoy the restaurant chain's menu, atmosphere, and consistency from restaurant to restaurant. The company's leadership, located at corporate headquarters, is very interested in the relationship between the cost of a gallon of gasoline and the company's revenue. Specificaly, the company is concemed that if gasoline prices rise in the near future, the company's revenue will decline dramaticaly. The company's research department recenty collected data for analysis in order to support leadership's upcoming discussion of whether the company should expand and diversity to locations away from an interstate highway. Annual revenue figures trom a random sample of 150 restaurants were collected. The research division also collected and calculated the average annual cost of gasoline at these 150 restaurants by randomly selecting three gasoline stations near each restaurant H Storical data was then used to calculate the average annual cost of gasoline. The Restaurant Number, Geographic Region, Annual Revenue, Average Cost of Gasoline, Miles from the Interstate, Square Footage and Annual Increase in Revenue were collected for these 150 restaurants. Corporate headquarters wants to create a simple linear regression model to predict a restaurants annual revenue using the average cost of gasoine First create a scatterplot using Average Cost of Gasoline as the independent variable and Annual Revenue as the dependent variable. Afler performing a visual analysis of the scatterplot, if appropriate, construdt a simple linear regression model using the average cost af gasoline to predict a restaurant's annual revenue Corporate headquarters is interested in forecasting a restaurant's annual revenue based upon the average cost of the predicted Annual Revenue of a restaurant when the Average Cost of Gasoline is 53.00? galon of gasoline. Using your simple inear regression model, what is 12709542 Round to the nearest dollar as needed.)

Answer 1

Intercept is 32851353

Slope -6665853.8

So the regression model is

= 32851353 - 66665853.8*x

Where y = Restaurant's annual revenue

x= Average cost of gasoline

Using the simple linear regression model, for every one cent increase in the cost of a gallon of gasoline, restaurant’s annual revenue decrease $66658.54

Predicted annual revenue of a restaurant when the average cost of gasoline is $3 = $12853792