34. Management proposed the following regression model to predict sales at a fast-food outlet. y=o + Bx

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34. Management proposed the following regression model to predict sales at a fast-food outlet. y=o + Bx + Bx2 + B3x3 + where x = number of competitors within one mile x population within one mile (1000s) (1 if drive-up window present x3 = 10 otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. = 10.1 - 4.2x + 6.8x + 15.3x3

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

b. Predict sales for a store with two competitors, a population of 8000 within one mile, and no drive-up window.

c. Predict sales for a store with one competitor, a population of 3000 within one mile, and a drive-up window.

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Essentials Of Modern Business Statistics

ISBN: 9780324312843

3rd Edition

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams

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