FRIES = 22.5 + 0.08*TRAFFIC + 9.1*COUPON? + -1.1*TEMP where FRIES is the number of pounds of fries a restaurant sells in a week, TRAFFIC is the number of people who walked by the restaurant that week (foot traffic), COUPON? is a dummy variable of if the restaurant offered a coupon or not that week (1=coupon, 0=no coupon); and TEMP is the average high that week, measured in Fahrenheit. All variables are statistically significant. If the average
Consider the following hypothetical regression:
FRIES = 22.5 + 0.08*TRAFFIC + 9.1*COUPON? + -1.1*TEMP
where FRIES is the number of pounds of fries a restaurant sells in a week, TRAFFIC is the number of people who walked by the restaurant that week (foot traffic), COUPON? is a dummy variable of if the restaurant offered a coupon or not that week (1=coupon, 0=no coupon); and TEMP is the average high that week, measured in Fahrenheit. All variables are statistically significant. If the average high is expected to be 4 degrees warmer next week, how should FRIES change?
| 1 |
Increase by 18.1 pounds |
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| 2 |
Decrease by 4.4 pounds |
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| 3 |
It is impossible to tell without knowing the values of TRAFFIC and COUPON?. |
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| 4 |
Increase by 4.4 pounds |
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| 5 |
Increase by 26.9 pounds |
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