Question

A grocery store wants to examine the relationship between the sales amounts each day at two different locations, store A and store B. The sales amount each day, in dollars, was recorded for 10 days at each store. The least-squares regression line is yˆ=−3,000+1.2x, where x represents the sales amounts each day at store A and y represents the sales amounts each day at store B. If the mean of the 10 sales amounts for store B is $45,000, what is the mean of the 10 sales amounts for store A?

Answer 1

Answer:

The mean of the 10 sales amounts for store A is $40,000.

Step-by-step explanation:

Given;

yˆ= −3,000 + 1.2x ...................... (1)

Where;

x = sales amounts each day at store A or the mean of the 10 sales amounts for store A = ?

yˆ = sales amounts each day at store B or the mean of the 10 sales amounts for store B = $45,000

Substituting y = 45,000 into equation (1) and solve for x, we have:

45,000 = −3,000 + 1.2x

45,000 + 3,000 = 1.2x

48,000 = 1.2x

x = 48,000 / 1.2

x = 40,000

Therefore, the mean of the 10 sales amounts for store A is $40,000.