Sales at Management proposed thể following regression model to pri y = Bo + Bx, + Bx + Bx, + € where x, = number of competitors within one mile X = population within one mile (1000s) lif drive-up window present l0 otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.1 - 4.6a +6.622 + 15.63 a. What is the expected amount of sales attributable to the drive-up window? $4 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 4,000 within one mile, and a drive-up window. Tintimnte f onl
Sales at Management proposed thể following regression model to pri y = Bo + Bx, + Bx + Bx, + € where x, = number of competitors within one mile X = population within one mile (1000s) lif drive-up window present l0 otherwise y = sales ($1000s) The following estimated regression equation was developed after 20 outlets were surveyed. ý = 10.1 - 4.6a +6.622 + 15.63 a. What is the expected amount of sales attributable to the drive-up window? $4 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 4,000 within one mile, and a drive-up window. Tintimnte f onl
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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N5
![Management proposed the following regression model to predict sales at a fast-food outlet.
y = Bo+ Bx + B,x, + B,t, + e
where
x = number of competitors within one mile
X2 = population within one mile (1000s)
lif drive-up window present
X =
l0 otherwise
y = sales ($1000s)
The following estimated regression equation was developed after 20 outlets were surveyed.
ý = 10.1 – 4.61 + 6.6x2 + 15.6r3
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 4,000 within one mile, and a drive-up window.
Estimate of sales = $
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42fcb475-4ab6-438b-b6b2-a29b13958a9b%2F464a3548-2df5-41cf-8910-7312a9eefa40%2F8373s2m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Management proposed the following regression model to predict sales at a fast-food outlet.
y = Bo+ Bx + B,x, + B,t, + e
where
x = number of competitors within one mile
X2 = population within one mile (1000s)
lif drive-up window present
X =
l0 otherwise
y = sales ($1000s)
The following estimated regression equation was developed after 20 outlets were surveyed.
ý = 10.1 – 4.61 + 6.6x2 + 15.6r3
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 4,000 within one mile, and a drive-up window.
Estimate of sales = $
%24
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