The Following Regression Model Has Been Proposed to Predict Sales

question 38

Essay

The following regression model has been proposed to predict sales at a fast food outlet. = 18 - 2x₁ + 7x₂ + 15x₃
where
x₁ = the number of competitors within 1 mile
x₂ = the population within 1 mile (in 1,000s)
x₃ = 1 if drive-up windows are present, 0 otherwise = sales (in $1,000s)
a.What is the interpretation of 15 (the coefficient of x₃) in the regression equation?
b.Predict sales for a store with 2 competitors, a population of 10,000 within one mile, and one drive-up window (give the answer in dollars).
c.Predict sales for the store with 2 competitors, a population of 10,000 within one mile, and no drive-up window (give the answer in dollars).

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Definitions:

Maori

The Indigenous Polynesian people of mainland New Zealand, known for their rich culture and history.

New Zealand

is an island country in the southwestern Pacific Ocean, known for its indigenous Maori culture, picturesque landscapes, and as a location for the filming of the "Lord of the Rings" series.

Matrilineal Descent

Descent traced exclusively through the female line of ancestry to establish group membership.

Husband And Wife

A legally recognized partnership, typically involving a man and a woman in a committed intimate relationship, forming the basis of a family unit.