The Following Regression Model Has Been Proposed to Predict Sales $\hat { Y }$

question 138

Short Answer

The following regression model has been proposed to predict sales at a furniture store.
$\hat { Y }$ = 10 - 4X1+7X2+18X3
where
X1 = competitor's previous day's sales in $1,000s) X2 = population within 1 mile in 1,000s)
X3 = 1 if any form of advertising was used, 0 if otherwise
$\hat { Y }$ = sales in $1,000s)
a. Fully interpret the meaning of the coefficient of X3.
b. Predict sales in dollars) for a store with competitor's previous day's sale of $3,000, a population of 10,000 within 1 mile, and six radio advertisements.

---

Definitions:

Wintergreen

A plant or flavoring that has a characteristic minty taste, often used in candies and medicinal products.

Oil of Cloves

An essential oil derived from clove trees, used medicinally for its pain-relieving properties, especially in dentistry, and for its aromatic qualities.

Contingency View

The contingency view is a theory that suggests the best way to organize or lead an organization varies depending on the internal and external situation or context.

Tone-shock Relationship

Refers to a conditioning paradigm in psychological experiments where a tone is paired with a mild shock, leading to an anticipatory response to the tone alone.