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:

Mirror Neurons

Neurons that fire when a person does something or observes someone else doing the same thing.

Mimic

To imitate or copy someone or something's actions, speech, or mannerisms, often for learning or entertainment.

Temperament

Describes innate aspects of an individual's personality, such as emotional reactivity and intensity, often evident early in life.

Parental Responses

The ways in which parents react to and handle their children's behavior, emotions, and needs, significantly impacting their development and psychological health.