A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ý - 25 + 12x, + 7x where X- inventory investment ($1,000s) 2 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. $ (282000 (b) Interpret b, and b, in this estimated regression equation. Sales can be expected to increase by $ 12000 x for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ 7000 x for every dollar increase in advertising expenditure when inventory investment is held constant.

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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
X, = inventory investment ($1,000s)
X, = 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.
$ 282000
(b) Interpret b, and b, in this estimated regression equation.
Sales can be expected to increase by $ 12000
for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ 7000
x 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 X, = inventory investment ($1,000s) X, = 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. $ 282000 (b) Interpret b, and b, in this estimated regression equation. Sales can be expected to increase by $ 12000 for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ 7000 x for every dollar increase in advertising expenditure when inventory investment is held constant.
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