There are many restaurants in northeastern South Carolina. They serve beach vacationers in the summer, golfers in the fall and spring, and snowbirds in the winter. Bill and Joyce Tuneall manage several restaurants in the North Jersey area and are considering moving to Myrtle Beach, SC, to open a new restaurant. Before making a final decision they wish to investigate existing restaurants and what variables seem to be related to profitability. They gather sample information where profit (reported in $000) is the dependent variable and the independent variables are:

X1 the number of parking spaces near the restaurant.
X2 the number of hours the restaurant is open per week.
X3 the distance from the Pavilion (a landmark in the central area)
in Myrtle Beach.
X4 the number of servers employed.
X5 the number of years the current owner has owned the restaurant.
The following is part of the output obtained using statistical software.

(a) What is the amount of profit for a restaurant with 40 parking spaces and that is open 72 hours per week, is 10 miles from the Pavilion, has 20 servers, and has been open 5 years?

(b) Interpret the values of b2 and b3 in the multiple regression equation.

Transcribed Image Text:

Predictor Coef SE Coef T Constant 2.50 1.50 1.667 X1 3.00 1.500 2.000 X2 4.00 3.000 1.333 X3 -3.00 0.20 -15.00 0.20 .05 4.00 1.00 1.50 0.667