The Following Regression Model Has Been Proposed to Predict Monthly

question 23

Essay

The following regression model has been proposed to predict monthly sales at a shoe store. = 40 - 3x₁ + 12x₂ + 10x₃
where
x₁ = competitor's previous month's sales (in $1,000s)
x₂ = Stores previous month's sales (in $1,000s) = sales (in $1000s)
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:

Express Warranty

is a seller’s promise or guarantee that a product will meet certain quality and reliability standards, explicitly stated in the contract or sales agreement.

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.