2.2

A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. )7: 29 + 10x1 + 8x2 where x l 1 inventoryinvestment ($1,0005) x l 2 advertising expenditures ($1,0005) y = sales ($1,0005). (a) Predict the sales (in dollars) resulting from a $14,000 investment in inventory and an advertising budget of $11,000. $ :1 (b) Interpret b1 and b2 in this estimated regression equation. Sales can be expected to increase by $ :] for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ :] for every dollar increase in advertising expenditure when inventory investment is held constant