Question
You work for an wholesaler that sells coffee to retail businesses. For each client, you have data on the total purchases made by the client
You work for an wholesaler that sells coffee to retail businesses. For each client, you have data on the total purchases made by the client (Purchases, measured in kilograms), the profit of each client (Turnover, measured in dollars), and the number of stores operated by each client (Stores, measured in number of stores).
A simple regression withPurchasesas the dependent variable andTurnoveras the independent variable was run, leading to the following fitted model:
Purchases(hat)=2826.84+5.26Turnover
A simple regression withPurchasesas the dependent variable andStoresas the independent variable was run, leading to the following fitted model:
Purchases(hat) =6590.34+441.85Stores
A multiple regression withPurchasesas the dependent variable andTurnoverandStoresas the independent variables was run, leading to the following fitted model:
Purchases(hat)=2639.25+5.29Turnover+90.46Stores
What is the estimated increase in the expected value ofPurchasesmeasured in kilograms associated with a 1 store increase inStoresholdingTurnoverconstant
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started