The following regression model has been proposed to predict

The following regression model has been proposed to predict sales at a computer store.

yhat = 50 - 3x1 + 20x2 + 10x3
where

x1 = competitor\'s previous day\'s sales (in $1,000s)
x2 = population within 1 mile (in 1,000s)
x3 = 1 if radio advertising was used, 0 if otherwise
yhat = sales (in $1000s)

Predict sales (in dollars) for a store with the competitor\'s previous day\'s sale of $5,000, a population of 20,000 within 1 mile, and nine radio advertisements

Solution

X1= 5000

X2=20000

X3=1

yhat=385060 $