27 As you note the coefficient of X3 is 0510 What is the int

27. As you note the coefficient of X3 is -0.510. What is the interpretation of this coefficient? a. Male?s income is lower than female?s by 0.510, holding the other independent variables constant. b. Female?s income is lower than male?s by 0.510. holding the other independent variables Constant. c. As X3 goes up by 1 unit, the dependent variable also goes up by 0.510. d. As X3 goes up by 1 unit, the other independent variables also go up by 0.5 10, holding the other dependent variable constant. Exhibit 6 - Answer questions 28-29 using the information below. The following regression model has been proposed to predict monthly sales at a shoe store. 28. What is the predicted 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? a. $ 373,000 b. $383,000 c. $473 d. $370 29. What is the predicted 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? (Hint: Remember that radio advertising is a categorical variable) a. $373,000 b. $ 383,000 c. $473 d. $370

Solution

27 is b)

28 Y==40-27+12*30+10 = 383000

29 Since X3 is a categorical variable, it will only take a value of 1, hence answer is still 383000