A national grocery store chain wants to predict the sales of organic items per store in order to design store layouts for future remodeling and expansion plans. You estimate the following multiple regression equation based on data collected on Average Income in the store market area and Average Years of Education of population in store market area. In addition, you have two dummy variables: whether the store is Located in a Metropolitan County = 1, 0 if not and whether the store is located in California =1, 0 if not. You get the following results:

$Sales = $22,000 + 3.1(Income) + $10,200(Education) + $133,000(Metro) + $95,000(California)

a. Assume you find a new location and you want to predict sales for the stores organic business. The average income in the area is $72, 500; the average educational level is 14.3 years; the location is in a Metro county in Laguna Beach California. What are the predicted sales? Show all work

b. Assume you want to build a store in Athens, GA, a non-metro county location with the same income and educational levels. What are the predicted sales? Show all work

c. Assume you want to build in the metro area of Akron, Ohio, which has an average income of $53,200 in the target area with an average educational level of 11.7 years. What are the predicted sales? Show all work.