Question: A regression of Total Revenue on Ticket Sales by the

A regression of Total Revenue on Ticket Sales by the con-cert production company of Exercises 2 and 4 finds the model
Revenue = - 14,228 + 36.87 Ticket Sales
a) Management is considering adding a stadium-style venue that would seat 10,000. What does this model predict that revenue would be if the new venue were to sell out?
b) Why would it be a poor business decision to assume that this model accurately predicts revenue for this situation?

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  • CreatedMay 15, 2015
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