A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.ŷ= 29+ 10x1 + 6x2wherex=inventory investment ($1,000s)X2yadvertising expenditures ($1,000s)sales ($1,000s).(a) Predict the sales (in dollars) resulting from a $14,000 investment in inventory and an advertising budget of $11,000.$ 15,000(b) Interpret b, and b₂ in this estimated regression equation.Sales can be expected to increase by $ 10,000expected to increase by $231,000X for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can beX for every dollar increase in advertising expenditure when inventory investment is held constant.

(a) .To predict the sales resulting from a $14,000 investment in inventory and an advertising budget…

Answered: A shoe store developed the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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