A linear model fit to predict weekly Sales of frozen pizza (in pounds) from the average Price ($/unit) charged by a sample of stores in the city of Dallas in 39 recent weeks is:
Saks = 141,865.53 - 24,369.49 Price.
a) What is the explanatory variable?
b) What is the response variable?
c) What does the slope mean in this context?
d) What does the y-intercept mean in this context? Is it meaningful?
e) What do you predict the sales to be if the average price charged was $3.50 for a pizza?
f) If the sales for a price of $3.50 turned out to be 60,000 pounds, what would the residual be?