Question

7. Dave’s Pizza periodically has a special week-long sale. As part of the advertising campaign Dave’s

runs one or more television commercials during the weekend preceding the sale. Data from a sample of

4 previous sales are shown.

Number of Ads

Weekly Revenue

12

27600

5

13385

9

15486

15

2820

Estimate the slope and intercept for the number of ads and weekly revenue for Dave’s Pizza. (5 points)

Estimate weekly revenue if 17 ads are placed. Explain your answer. (3 points)

how would you answer these questions

Answer 1

Slope = -510.205 (Rounded to three decimal places)

Intercept = 20052.356 (Rounded to three decimal places)

Hence we get regression line as -

Y^ = 20052.356 - 510.205 * X

For x = 17

we get - Revenue (Y^) = 20052.356 - 510.205 * 17

= 11378.863

Hence Estimated weekly revenue if 17 ads are placed is 11378.863 (Rounded to three decimal places)

Hope this will help you. Thank you :)