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. Interpret the value of b_3. Select the correct choice below and fill in the answer box to complete your choice.

Solution

As the value of b₃ = -95,

Increasing x₃ (number of activites) by 1, with other independent variables remaining constant, y will decrease by 95 $

Answer: D. With other independent variables remaining constant, increasing the number of activities by one, the average weekly sales decreases by 95 $