Mexico Inc. has opened numerous restaurants near college campuses. Given below are student population in thousands...

Mexico Inc. has opened numerous restaurants near college campuses. Given below are student population in thousands (X) and annual revenue in millions at Taco Sell (Y) for various campuses.

Student Population in thousands (X)	Annual Revenue in thousands (Y)
Student Population in thousands (X)	Annual Revenue in thousands (Y)
8	97
5	80
17	127
10	95
21	115
3	80
9	90

a) Is this a time series or a causal relation case?

b) Please develop a regression equation for this case (write the equation clearly)

c) How good is the model (that is what can you say about the model given the r2 value)?

d) Now, the company is contemplating opening an outlet at IUP (current student population 10,000). Make a forecast of annual revenue at the IUP outlet of Taco Sell
.

Expert Solution

keosha answered 1 month ago

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