Management proposed the following regression model to predict sales at a fast-food outlet. y = ?0 + ?1x1 + ?2x2 + ?3x3 + ? where x1 = number of competitors within one mile x2 = population within one mile (1,000s) x3 = 1 if drive-up window present 0 otherwise y = sales ($1,000s). The following estimated regression equation was developed after 20 outlets were surveyed. ŷ = 10.5 − 4.2x1 + 6.8x2 + 15.5x3 (a) What is the expected amount of sales (in dollars) attributable to the drive-up window? $ (b) Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window. $ (c) Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.

Management proposed the following regression model to predict sales at a fast-food outlet. y = ?0 + ?1x1 + ?2x2 + ?3x3 + ? where x1 = number of competitors within one mile x2 = population within one mile (1,000s) x3 = 1 if drive-up window present 0 otherwise y = sales ($1,000s). The following estimated regression equation was developed after 20 outlets were surveyed. ŷ = 10.5 − 4.2x1 + 6.8x2 + 15.5x3 (a) What is the expected amount of sales (in dollars) attributable to the drive-up window? $ (b) Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window. $ (c) Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

100%

Management proposed the following regression model to predict sales at a fast-food outlet.

y = ?₀ + ?₁x₁ + ?₂x₂ + ?₃x₃ + ?

where

x₁

number of competitors within one mile

x₂

population within one mile (1,000s)

x₃

1 if drive-up window present

0 otherwise

sales ($1,000s).

The following estimated regression equation was developed after 20 outlets were surveyed.

ŷ = 10.5 − 4.2x₁ + 6.8x₂ + 15.5x₃

(a)

What is the expected amount of sales (in dollars) attributable to the drive-up window?

(b)

Predict sales (in dollars) for a store with two competitors within one mile, a population of 8,000 within one mile, and no drive-up window.

(c)

Predict sales (in dollars) for a store with one competitor within one mile, a population of 3,000 within one mile, and a drive-up window.

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