SHOW STEPS SOLVING THIS PROBLEM The following is a partial c

SHOW STEPS SOLVING THIS PROBLEM.

The following is a partial computer output of a multiple regression analysis of a data set containing ten sets of observations on the dependent variable, SALES (= sales volume in thousands of dollars), and two independent variables, ADVT (= advertising expenditure in thousands of dollars) and REPS (= number of sales representatives). What is the predicted value of sales if the advertisement expenditure is $3000 and there are 40 sales representatives?

Solution

prediction = contant coef + ADVT*its coeff + REPS * its coeff = 7.017 + 3*8.623 + 40*0.086 = 36.326 (thousands)

option (B)