a) If 11 new competing stores moved into the sales district but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? (Use 2 decimal places.) b) If you increased the local advertising by 9 thousand dollars but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? (Use 2 decimal places.)
All Greens is a franchise store that sells house plants and lawn and garden supplies. Although All Greens is a franchise, each store is owned and managed by private individuals. Some friends have asked you to go into business with them to open a new All Greens store in the suburbs of San Diego. The national franchise headquarters sent you the following information at your request. These data are about 27 All Greens stores in California. Each of the 27 stores has been doing very well, and you would like to use the information to help set up your own new store. The variables for which we have data are detailed below.
x2 = number of square feet of floor display in store, in thousands of square feet
x3 = value of store inventory, in thousands of dollars
x4 = amount spent on local advertising, in thousands of dollars
x5 = size of sales district, in thousands of families
x6 = number of competing or similar stores in sales district
A sales district was defined to be the region within a 5 mile radius of an All Greens store.
| x1 | x2 | x3 | x4 | x5 | x6 |
| 231 | 3 | 294 | 8.2 | 8.2 | 11 |
| 156 | 2.2 | 232 | 6.9 | 4.1 | 12 |
| 10 | 0.5 | 149 | 3 | 4.3 | 15 |
| 519 | 5.5 | 600 | 12 | 16.1 | 1 |
| 437 | 4.4 | 567 | 10.6 | 14.1 | 5 |
| 487 | 4.8 | 571 | 11.8 | 12.7 | 4 |
| 299 | 3.1 | 512 | 8.1 | 10.1 | 10 |
| 195 | 2.5 | 347 | 7.7 | 8.4 | 12 |
| 20 | 1.2 | 212 | 3.3 | 2.1 | 15 |
| 68 | 0.6 | 102 | 4.9 | 4.7 | 8 |
| 570 | 5.4 | 788 | 17.4 | 12.3 | 1 |
| 428 | 4.2 | 577 | 10.5 | 14.0 | 7 |
| 464 | 4.7 | 535 | 11.3 | 15.0 | 3 |
| 15 | 0.6 | 163 | 2.5 | 2.5 | 14 |
| 65 | 1.2 | 168 | 4.7 | 3.3 | 11 |
| 98 | 1.6 | 151 | 4.6 | 2.7 | 10 |
| 398 | 4.3 | 342 | 5.5 | 16.0 | 4 |
| 161 | 2.6 | 196 | 7.2 | 6.3 | 13 |
| 397 | 3.8 | 453 | 10.4 | 13.9 | 7 |
| 497 | 5.3 | 518 | 11.5 | 16.3 | 1 |
| 528 | 5.6 | 615 | 12.3 | 16.0 | 0 |
| 99 | 0.8 | 278 | 2.8 | 6.5 | 14 |
| 0.5 | 1.1 | 142 | 3.1 | 1.6 | 12 |
| 347 | 3.6 | 461 | 9.6 | 11.3 | 6 |
| 341 | 3.5 | 382 | 9.8 | 11.5 | 5 |
| 507 | 5.1 | 590 | 12.0 | 15.7 | 0 |
| 400 | 8.6 | 517 | 7.0 | 12.0 | 8 |
a) If 11 new competing stores moved into the sales district but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? (Use 2 decimal places.)
b) If you increased the local advertising by 9 thousand dollars but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? (Use 2 decimal places.)
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