Question

The theater director recorded the number of seats occupied at past performances and the total revenue per

Answer 1

Answer:

• $45 (with the assumption made below)

Step-by-step explanation:

The equation is garbled; thus, to explain you I will assume the equation is

• R(s) = -325 + 14s

Where:

• R(s) is the revenue in dollars, as a function of the number of seats occupied.
• s is the variable that represents the number of seast occupied
• 14 is the rate of change of the revenue per seat occupied (the price of a ticket).
• -325 is the fixed cost of the theater for a performance (the amount of money the theater will lose if none seat is occupied).

Thus, you can predict the revenue when 70 seats are occupied by substituting s with 70.

• R(70) = -325 + 14(70)

• R(70) = -325 + 980 = $655

The residual value from a prediction is equal to the real value (observed value) less the preducted value:

• Residual = real revenue - predicted revenue

• Residual = $700 - $655 = $45