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The City of Chicago must develop a linear regression model that can be used to estimate the parking needs of various communities. The city collected data on 50 communities, noting each community’s population and total annual hours of parking spots used between 7 am and 6 pm as measured by parking meters. Using this data, you have calculated the following regression equation:
Y = 100 + 50X
where X is the population of the community and Y is the total hours of parking spots used between 7 am and 6 pm as measured by parking meters.
a. Using this regression model for estimation, how much parking meter time (between 7 am and 6 pm) annually would a community of 1,000 people consume? A community of 10,000?
b. According to this regression model, each new person who moves to a community increases its annual parking spot (between 7 am and 6 pm) consumption by how much?
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