Exercise 1534 The following estimated regression equation wa

{Exercise 15.34}

The following estimated regression equation was developed after 20 outlets were surveyed.

= 10.8 - 4.6x₁ + 6.1x₂ + 15.9x₃

a. What is the expected amount of sales attributable to the drive-up window?
$ in thousands

b. Predict sales for a store with two competitors, a population of 9,000 within one mile, and no drive-up window.

Estimate of sales = $ in thousands

c. Predict sales for a store with one competitor, a population of 4,000 within one mile, and a drive-up window.

Estimate of sales = $ in thousands

Solution

a)

expected = $15.9

b)

Y = 10.8 - 4.6*2 + 6.1*9000 + 0

Y = 54901.6

c)

Y = 10.8 - 4.6*1 +6.1*4000 + 15.9 * 1

Y = 54922.1