In working for a local retail store you have developed the e

In working for a local retail store, you have developed the estimated regression equation shown below, where y is the weekly sales in dollars, x_1 is the percent local unemployment rate, x_2 is the weekly average high temperature in degrees Fahrenheit, x_3 is the number of activities in the local community, x_4 is the average gasoline price. Complete parts a and b.

Solution

As b₄ = -78 (Coefficient of x₄)

Answer: A. Holding the other independent variables constant and increasing the gasoline price byone dollar, average weekly sales is estimated to decrease by 78 $