The Following Estimated Regression Equation Has Been Proposed to Predict $\hat { y } = 18 - 2 x _ { 1 } + 7 x _ { 2 } + 15 x _ { 3 }$

question 43

Essay

The following estimated regression equation has been proposed to predict sales at a fast food outlet.
​ $\hat { y } = 18 - 2 x _ { 1 } + 7 x _ { 2 } + 15 x _ { 3 }$
where
$x _ { 1 } =$ the number of competitors within 1 mile
$x _ { 2 } =$ the population within 1 mile (in $\left. 1000 \mathrm {~s} \right)$
$x _ { 3 } = 1$ if drive-up windows are present; 0 otherwise
$\widehat { y } =$ estimated sales $($ in $\$ 1000 \mathrm {~s} )$
a.
What is the interpretation of 15 (the coefficient of x₃) in the regression equation?
b.
Predict sales for an outlet with 2 competitors, a population of 10,000 within one mile, and one drive-up window (give the answer in dollars).
c.
Predict sales for an outlet with 2 competitors, a population of 10,000 within one mile, and no drive-up window (give the answer in dollars).

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Definitions:

Job Applicant Data

Information collected about individuals applying for job positions, including qualifications, experience, and background.

Unemployment Figures

Statistical data representing the percentage or number of individuals in the labor force who are not currently employed but are seeking employment.

Market Opportunity

A favorable condition in the market that a business can exploit to grow its sales and increase profitability.

Proactive Change

Initiating changes or actions in anticipation of future problems or opportunities, rather than reacting to events after they happen.