A division of a multinational retail company prepared a presentation to give at the home office in Paris, France. The presentation includes a scatterplot that shows the relationship between square footage and annual sales in retail outlets owned by the chain. The units in the plot show the size in thousands of square feet and the response in thousands of dollars. A fitted line in the plot is ? = 41 + 678x. Complete parts a through d below. (a) Interpret the slope and intercept in the fitted line. What is the correct interpretation of the intercept? Select the correct choice below and fill in the answer box(es) to complete your choice. A. The intercept is [ ] thousand dollars per square foot. For every one square foot increase, average annual sales increase by [ ] thousand dollars. B. The intercept is $ [ ] per square foot. For every one square foot increase, average annual sales increase by $ [ ]. C. The intercept of [ ] thousand dollars is likely an extrapolation and not directly interpretable. D. The intercept of [ ] thousand dollars is the cost of a room with 0 square feet.
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This means that for every one unit increase in square footage (in thousands of square feet), the average annual sales increase by $41,678. Show more…
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