The Following Estimated Regression Equation Has Been Proposed to Predict $\hat { y } = 40 - 3 x _ { 1 } + 12 x _ { 2 } + 10 x _ { 3 }$

question 6

Essay

The following estimated regression equation has been proposed to predict monthly sales at a shoe store.
​ $\hat { y } = 40 - 3 x _ { 1 } + 12 x _ { 2 } + 10 x _ { 3 }$
where
$\begin{array} { l } x _ { 1 } = \text { competitor's previous month's sales (in } \$ 1000 \mathrm {~s} \text { ) } \\x _ { 2 } = \text { store's previous month's sales (in } \$ 1000 \mathrm {~s} \text { ) } \\x _ { 3 } = 1 \text { if radio advertising was used; } 0 \text { otherwise } \\\widehat { y } = \text { estimated sales (in } \$ 1000 \text { s) }\end{array}$
a.
Predict sales (in dollars) for the shoe store if the competitor's previous month's sales were $9000, the store's previous month's sales were $30,000, and no radio advertisements were run.
b.
Predict sales (in dollars) for the shoe store if the competitor's previous month's sales were $9000, the store's previous month's sales were $30,000, and 10 radio advertisements were run.

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Definitions:

Classified Ads

Short advertisements placed in a newspaper, magazine, or online, usually categorized by topic, such as jobs, real estate, and services.

Flat Fee

A pricing structure where a single fixed rate is charged for a service, regardless of usage or time required.

Résumés

Written compilations of a person's education, work experience, qualifications, and accomplishments, used as part of a job application.

Part-Time

Employment with fewer hours per week compared to full-time positions, offering limited work time and often fewer benefits.