The Following Regression Model Has Been Proposed to Predict Monthly

question 22

Essay

The following regression model has been proposed to predict monthly sales at a shoe store.
a.Predict sales (in dollars)for the shoe store if the competitor's previous month's sales were $9,000,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 $9,000,the store's previous month's sales were $30,000,and 10 radio advertisements were run.

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Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Automobile Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.

Likely Used

Refers to items or methods that are commonly adopted or employed due to their effectiveness or efficiency.

Gross Profit

The amount by which sales revenue exceeds the cost of goods sold, prior to subtracting expenses such as overheads, payroll taxes, and interest.