Examlex
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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