After transforming data, a model of retail sales of furniture and fixtures in Canada on value of building permits yielded the following equation: log10 (Sales) = 2.33 + 0.57 log10 (Value of permits)
What is the predicted value of retail sales if the value of building permits is $700,000?
A) $458,887.14
B) $5.66
C) $2,137.96
D) $3.33
E) $22,060.33

Question

Quizplus · Accepted Answer

The predicted value of retail sales can be calculated by plugging the value of building permits into the equation:log10 (Sales) = 2.33 + 0.57 log10 (Value of permits)log10 (Sales) = 2.33 + 0.57 log10 (700,000)log10 (Sales) = 2.33 + 0.57 * 5.845log10 (Sales) = 2.33 + 3.33log10 (Sales) = 5.66Sales = 10^5.66Sales = $458,887.14

After Transforming Data, a Model of Retail Sales of Furniture