A marketing manager has determined that demand for his company€™s popular product in a region is a function of the size of the region€™s population in tens of thousands (x₁), advertising dollars in thousands (x₂), and disposable income in thousands (x₃). Using past data, the manager has developed the following multiple regression model:

1. Forecast the demand for this product if x₁ = 5.5, x₂ = 20, and x₃ = 55.

2. In addition to the independent variables, what additional quantitative variables might you include in the model to make it more effective?

Transcribed Image Text:

Ve = 10.3 + 4.1x1+5.3x,+8.5x3