Management proposed the following regression model to predict sales at a fast-food outlet. y = Bo + Biz + B2e + Bzs +e where 21 = number of competitors within one mile 22 = population within one mile (1000s) Si if drive-up window present 10 otherwise y= sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.1 - 4.2z + 6.8z2 + 15.3z 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 = $ 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 + B121 + B2 + Bas +e
where
*1 = number of competitors within one mile
E2 = population within one mile (1000s)
S1 if drive-up window present
otherwise
y = sales ($1000s)
The following estimated regression equation was developed after 20 outlets were surveyed.
ý = 10.1- 4.2 + 6.8z2 +15.3r3
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 = $
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 + B121 + B2 + Bas +e where *1 = number of competitors within one mile E2 = population within one mile (1000s) S1 if drive-up window present otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.1- 4.2 + 6.8z2 +15.3r3 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 = $ 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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