Fact Pattern:

Many firms have site location models to predict future sales (Y) at locations yet to be developed. Some explanatory variables that could be used are: population density within a specific radius (X1), traffic flow (X2), the number of competitors (X3), and the ease of entry into and out of the proposed site (X4). An abbreviated computer printout of a linear analysis yields:DEPENDENT VARIABLE:

Y

N:

12

R:

.986

R SQUARED:

.972

STANDARD ERROR:

3800

VARIABLE

COEFFICIENT

CONSTANT

124,000

X1

5

X2

350

X3

-1,700

X4

4,000

Question

The technique being used is called

• A.
• Integrated autoregressive-moving average (ARIMA) modeling.
• B.
• Linear programming.
• C.
• Multiple regression analysis.
• D.
• Exponential smoothing, multiple parameters.