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A restaurant owner commissioned a study of sales for each of their 75 locations to understand how local population, advertising, and coupons affected sales. The
A restaurant owner commissioned a study of sales for each of their 75 locations to understand how local population, advertising, and coupons affected sales. The dependent variable was sales at each location for the year in dollars. The independent variables were: Population in the 10-mile radius of the location Advertising dollars spent on a location. Number of coupons distributed via the mail at each location. The results of the regression are displayed below: SUMMARY OUTPUT Regression Statistics Multiple R 0.608 R Square 0.369 Adjusted R Square 0.343 Standard Error 108616.07 Observations 75 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -114616.32 274488.10 -0.42 0.678 -661930.05 432697.42 Population 5.94 2.40 2.48 0.016 1.16 10.72 Advertising 8.44 1.50 5.62 0.000 5.45 11.44 Coupons 0.11 0.03 3.17 0.002 0.04 0.17 Use this information to answer the following: Question 16 (1 point) For each additional dollar of advertising sent at a location, how much additional estimated revenue would the owner expect? Question 16 options
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