You are the owner of a restaurant located in a beach resort in Hawaii and want to use regression analysis to estimate the demand for your fresh seafood dinners. You have collected data on the daily quantity of seafood dinners sold over the last summer season. In order to correctly specify your regression equation, which of the following variables should be considered?
A)the prices charged for scuba diving excursions at the resort
B)the daily number of vacationers at the resort
C)the wages paid to your chef and servers
D)the prices charged for souvenirs in local stores

Question

Quizplus · Accepted Answer

The daily number of vacationers at the resort is a potential determinant of demand for seafood dinners. Knowing how many people are at the resort can help predict the number of customers who may eat at the restaurant. The other variables listed are not directly related to the demand for seafood dinners and should not be included in the regression equation.

You Are the Owner of a Restaurant Located in a Beach