A major shoe manufacturer is considering launching a brand new pair of running shoes. Before introducing the shoes to the market, the company wants to determine the impact the price and in-store promotions will have on the sales of the new shoes. A sample of 24 shoe retail stores was selected for test marketing. The data obtained from the study are as follows:

1. Based on this data, use Excel to develop a multiple regression equation.

2. Interpret the coefficients b₀, b₁, and b₂.

3. Interpret the statistics €œmultiple R€ and the coefficient of determination (R²) in the regression output.

4. Forecast shoe sales if the price is US$65 and the amount spent on advertising is US$4,400.

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Price (in U.S. dollars) Shoe Sales Price In-store Promotion Shoe Sales In-store Promotion Store (in U.S. dollars) (in U.S. dollars) (in U.S. dollars) Store (in U.S. dollars) (in U.S. dollars) 2,500 55 410 13 75 5,000 270 2,500 75 5,000 55 380 14 310 320 3 55 2,500 15 75 5,000 380 7,500 55 5,000 350 16 75 300 5,000 55 450 17 75 7,500 330 55 5,000 470 18 75 7,500 420 55 7,500 490 19 95 2.500 180 55 7,500 510 20 95 2,500 200 7,500 55 540 21 95 5,000 190 10 75 2,500 250 22 95 5,000 220 11 75 2,500 300 23 95 7,500 240 75 2,500 290 24 95 7.500 270 12