A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. The data used to develop the model came from a survey of 10 stores; for these data SST = 16,000 and SSR = 12,000. = 25 + 101 + 82 a) Interpret b1 and b2 in this estimated regression equation ? b) Estimate sales resulting from a $15,000 investment in inventory and an advertising budget of $10,000 ? c) For the estimated regression equation given, compute 2 . Does the model appear to explain a large amount of variability in the data? Explain? d) Compute SSE, MSE, and MSR ? e) Use an F test and = .05 level of significance to determine whether there is a relationship among the variables ?

2. A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. The data used to develop the model came from a survey of 10 stores; for these data SST = 16,000 and SSR = 12,000. = 25 + 10x1 + 8x2 where inventory investment ($1000s) x2 = advertising expenditures ($1000s) y = sales ($1000s) a) Interpret b1 and b2 in this estimated regression equation ? b) Estimate sales resulting from a $15,000 investment in inventory and an advertising budget of $10,000 ? c) For the estimated regression equation given, compute R2. Does the model appear to explain a large amount of variability in the data? Explain? d) Compute SSE, MSE, and MSR? e) Use an F test and a = .05 level of significance to determine whether there is a relationship among the variables