34. Management proposed the following regression model to predict sales at a fast-food outlet. y=o + Bx
Question:
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.
Step by Step Answer:
Essentials Of Modern Business Statistics
ISBN: 9780324312843
3rd Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams