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

Answer to a)

15.9

.

Part b)

Y hat = 10.8 - 4.6 *2 + 6.1 *9000 +15.9 *0

Y hat = 54901.6

.

Part c)

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

Y hat = 24422.1