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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 a 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:
Average monthly customer-visits 1,462
Average monthly total costs $ 4,629
Regression Results
Intercept $ 1,496
b coefficient $ 2.08
R2 0.86814
Based on the data derived from the regression analysis, what are the estimated costs for 1,600 customer-visits in a month? (CMA adapted)
A) $6,125.
B) $4,629.
C) $3,328.
D) $4,824.
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Answers: 2
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