Management proposed the following regression model to predict sales at a fast-food outlet. y = ?0 + ?1x1 + ?2x2 + ?3x3 + ? where x1 = number of competitors within one mile x2 = population within one mile (1,000s) x3 = 1 if drive-up window present 0 otherwise y = sales ($1,000s). The following estimated regression equation was developed after 20 outlets were surveyed. ŷ = 10.5 − 4.2x1 + 6.8x2 + 15.5x3 (a) What is the expected amount of sales (in dollars) attributable to the drive-up window? $ (b) Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window. $ (c) Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.
Management proposed the following regression model to predict sales at a fast-food outlet. y = ?0 + ?1x1 + ?2x2 + ?3x3 + ? where x1 = number of competitors within one mile x2 = population within one mile (1,000s) x3 = 1 if drive-up window present 0 otherwise y = sales ($1,000s). The following estimated regression equation was developed after 20 outlets were surveyed. ŷ = 10.5 − 4.2x1 + 6.8x2 + 15.5x3 (a) What is the expected amount of sales (in dollars) attributable to the drive-up window? $ (b) Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window. $ (c) Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter3: Straight Lines And Linear Functions
Section3.CR: Chapter Review Exercises
Problem 15CR: Life Expectancy The following table shows the average life expectancy, in years, of a child born in...
Related questions
Question
100%
Management proposed the following regression model to predict sales at a fast-food outlet.
y = ?0 + ?1x1 + ?2x2 + ?3x3 + ?
where
x1 | = | number of competitors within one mile | |||
x2 | = | population within one mile (1,000s) | |||
x3 | = |
|
|||
y | = | sales ($1,000s). |
The following estimated regression equation was developed after 20 outlets were surveyed.
ŷ = 10.5 − 4.2x1 + 6.8x2 + 15.5x3
(a)
What is the expected amount of sales (in dollars) attributable to the drive-up window?
$
(b)
Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window.
$
(c)
Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Recommended textbooks for you
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning