PART II Business Administration
Question 1 (L03)
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 patron-izing 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
Average monthly total costs
Regression Results
Intercept
b coefficient
R²
1,462
$4,629
$1,496009
$2.08
0.86814
000.
Required
A) How is the letter y in the regression equation best described?
B) How is b in the regression equation best described?
C) What is the amount of fixed cost?
D) What is the percent of the total variance that can be explained by the regression equation?