Answer:
b is the amount by which the costs of the stores (i.e. y) will increase whenever the number of customers patronizing the stores (i.e. x) increases by one.
Step-by-step explanation:
How is the letter b best described?
b is the amount by which the costs of the stores (i.e. y) will increase whenever the number of customers patronizing the stores (i.e. x) increases by one.
That is, b is the coefficient of letter x and it indicates that whenever there is a one unit increase in the number of customers patronizing the stores (i.e. x), the costs of the stores (i.e. y) will increase by $2.08.
To give an example, the regression equation in the question is expressed as:
y = a + bx ............................ (1)
Where;
y = the costs of the stores = ?
a = Intercept = $1,496
b = coefficient = $2.08
x = the number of customers patronizing the stores = ?
Assume x = 1, we can predict y by substituting the values to obtain y1 as follows:
y1 = $1,496 + ($2.08 * 1) = $1,496 + $2.08 = $1,498.08
Now, assume x increases by 1 to 2 i.e. x = 2, we can predict y by substituting the values to obtain y2 as follows:
y2 = $1,496 + ($2.08 * 2) = $1,496 + $4.16 = $1,500.16
The the change is y as a result of one unit increase in x from 1 to 2 can then be obtained as follow:
Change in y = y2 - y1 = $1,500.16 - $1,498.08 = $2.08.
This therefore cofirms that b indicates that whenever there is a one unit increase in the number of customers patronizing the stores (i.e. x), the costs of the stores (i.e. y) will increase by $2.08.
