A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ŷ = 25 + 10x1 + 8x2 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 b1 and b2 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.

A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ŷ = 25 + 10x1 + 8x2 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 b1 and b2 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.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.

ŷ = 25 + 10x₁ + 8x₂

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

b₁ and b2 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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