The XYZ Paint Shop owns and operates a dozen shops in southern Iowa. Their signature paint is black epoxy. Sales (X, in millions of dollars) is related to Profits (Y, in hundreds of thousands of dollars) by the regression equation Y = 6.321 + 0.65X. What is your forecast of profit for a store with sales of $25 million? $65 million?

Forecast for the profit when X = $ 25 Million

Y = 6.321 + 0.65 * 25 = 22.571 (In hundreds of thousands of dollars) =

$ 22,57,100

Forecast for the profit when X = $ 65 Million

Y = 6.321 + 0.65 * 65 = 48.571 (In hundreds of thousands of dollars) =

$ 48,57,100

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