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
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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 | = |
|
|||
| 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.
$
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