A grocer operates a store in a small city. The total weekly sales of an item depend on the price, coupon (available = 1, not available = 0), and advertising expenditures. After analyzing the data, an analyst has determined the following predictive model: Total Sales = 1210.20 + 50.50 X Price + 120.45 X Coupon + 4.8 X Advertising (a) Explain how to interpret the numbers in this model. (b) Suppose that for a week, the price for the item was $8, coupon was available, and advertising expenditure was $250. What is the predicted total sales amount for that week?
A grocer operates a store in a small city. The total weekly sales of an item depend on the price, coupon (available = 1, not available = 0), and advertising expenditures. After analyzing the data, an analyst has determined the following predictive model: Total Sales = 1210.20 + 50.50 X Price + 120.45 X Coupon + 4.8 X Advertising (a) Explain how to interpret the numbers in this model. (b) Suppose that for a week, the price for the item was $8, coupon was available, and advertising expenditure was $250. What is the predicted total sales amount for that week?
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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A grocer operates a store in a small city. The total weekly sales of an item depend on the price, coupon (available = 1, not available = 0), and advertising expenditures. After analyzing the data, an analyst has determined the following predictive model:
Total Sales = 1210.20 + 50.50 X Price + 120.45 X Coupon + 4.8 X Advertising
(a) Explain how to interpret the numbers in this model.
(b) Suppose that for a week, the price for the item was $8, coupon was available, and advertising expenditure was $250. What is the predicted total sales amount for that week?
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