A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ý = 25 + 12x, + 7x2 where X = inventory investment ($1,000s) X2 = advertising expenditures ($1,000s) y = sales ($1,000s). (a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $11,000. $ (b) Interpret b, and b, in this estimated regression equation. Sales can be expected to increase by $ in advertising expenditure when inventory investment is held constant. for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ for every dollar increase

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A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.
ŷ = 25 + 12x, + 7x2
where
X1 = inventory investment ($1,000s)
X2 = advertising expenditures ($1,000s)
y = sales ($1,000s).
(a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $11,000.
$
(b) Interpret b, and b, in this estimated regression equation.
Sales can be expected to increase by $
for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $
for every dollar increase
in advertising expenditure when inventory investment is held constant.
Transcribed Image Text:A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ŷ = 25 + 12x, + 7x2 where X1 = inventory investment ($1,000s) X2 = advertising expenditures ($1,000s) y = sales ($1,000s). (a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $11,000. $ (b) Interpret b, and b, in this estimated regression equation. Sales can be expected to increase by $ for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ for every dollar increase in advertising expenditure when inventory investment is held constant.
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