The Manager of a Gas Station Along an Interstate Highway

question 93

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 12^th week of the summer if the price per gallon is estimated to be $3.00?

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