Question
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:
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.
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