A fitted regression Profit = -570 + 30 Sales (all variables in thousands of dollars) was estimated from a random sample of pharmacies. From this regression, in order to break even (Profit ≥ 0), a pharmacy's Sales would have to be at least:
A)19.
B)300.
C)56.
D)100.

Question

Quizplus · Accepted Answer

To break even, set Profit = 0 and solve for Sales: 0 = -570 + 30 Sales. Solving for Sales gives Sales = 570 / 30 = 19.

A Fitted Regression Profit = -570 + 30 Sales (All