Question

One study found that one star's worth of improvement on Yelp leads on average to an increase of between 5 and 9percent in revenue. For a restaurant with revenue of $500,000, how much is a one star improvement worth (in additional revenue) if you usethe middle of the range, 7%?a) $30,000b) $35,000c) $40,000 d) $45,000

Answer 1

Step 1: we need to find the value of 7% of $500,000.

Using the middle of the range, that is, 7% of $500,000. we have,

$\begin{gathered} 7\text{ \% of 500,000} \\ =\frac{7}{100}\times500000 \\ =7\times5000=\text{ \ 35,000} \end{gathered}$

Therefore, the correct answer is $35,000 (option B)