Management proposed the following regression model to predict sales at a fast-food outlet. y = Bo + Bi +B2a2+B#3 +e where E = number of competitors within one mile *2 = population within one mile (1000s) f1 if drive-up window present 10 otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.3 - 4.621 +6.1z +15.7s a. What is the expected amount of sales attributable to the drive-up window? b. Predict sales for a store with two competitors, a population of 8,000 within one mile, and no drive-up window. Estimate of sales = 8 c. Predict sales for a store with one competitor, a population of 3,000 within 1 mile, and a drive-up window. Estimate of sales = $

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Management proposed the following regression model to predict sales at a fast-food outlet.
y = Bo + Bizi + Bra2 + Baas +e
where
E = number of competitors within one mile
*2 = population within one mile (1000s)
S1 if drive-up window present
0 otherwise
y = sales ($1000s)
The following estimated regression equation was developed after 20 outlets were surveyed.
ý = 10.3 - 4.6z +6.12, + 15.7s
a. What is the expected amount of sales attributable to the drive-up window?
b. Predict sales for a store with two competitors, a population of 8,000 within one mile, and no drive-up window.
Estimate of sales = 8
c. Predict sales for a store with one competitor, a population of 3,000 within 1 mile, and a drive-up window.
Estimate of sales = $
Transcribed Image Text:Management proposed the following regression model to predict sales at a fast-food outlet. y = Bo + Bizi + Bra2 + Baas +e where E = number of competitors within one mile *2 = population within one mile (1000s) S1 if drive-up window present 0 otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.3 - 4.6z +6.12, + 15.7s a. What is the expected amount of sales attributable to the drive-up window? b. Predict sales for a store with two competitors, a population of 8,000 within one mile, and no drive-up window. Estimate of sales = 8 c. Predict sales for a store with one competitor, a population of 3,000 within 1 mile, and a drive-up window. Estimate of sales = $
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