The Manager of a Gas Station Along an Interstate Highway

question 64

Essay

The manager of a gas station along an interstate highway has observed that gasoline sales generally increase each week over the summer months as more families travel by car on vacations.He also believes that sales are sensitive to fluctuations in the price of gasoline.He developed the following regression model:
Sales = 59407 + 509 (Week) - 16463 (Price/gallon)
a.Interpret the coefficients of the independent variables in this model.
b.What is the sales forecast for the 11^th week of the summer if the price per gallon is estimated to be $3.00?

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Definitions:

Similarity

The state of being alike or having attributes in common, often used to describe relationships or comparisons between objects, ideas, or individuals.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful to others.

Appealing Traits

Characteristics or qualities that are found attractive or desirable by others.

Young Adults

Individuals in their late teens to early twenties, often considered a transitional phase from adolescence to adulthood.