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Management proposed the following regression model to predict sales at afast-food outlet.$$y=\beta_{0}+\beta_{1} x_{1}+\beta_{2} x_{2}+\beta_{3} x_{3}+\epsilon$$where$$\begin{aligned} x_{1} &=\text { number of competitors within one mile } \\ x_{2} &=\text { population within one mile }(1000 \mathrm{s}) \end{aligned}$$$$x_{3}=\left\{\begin{array}{ll}{1 \text { if drive-up window present }} \\ {0 \text { otherwise }}\end{array}\right.$$$$y=\operatorname{sales}(\$ 1000 s)$$The following estimated regression equation was developed after 20 outlets were surveyed.$$\hat{y}=10.1-4.2 x_{1}+6.8 x_{2}+15.3 x_{3}$$$$\begin{array}{l}{\text { a. What is the expected amount of sales attributable to the drive-up window? }} \\ {\text { b. Predict sales for a store with two competitors, a population of } 8000 \text { within one mile, }} \\ {\text { and no drive-up window. }} \\ {\text { c. Predict sales for a store with one competitor, a population of } 3000 \text { within one mile, }} \\ {\text { and a drive-up window. }}\end{array}$$

a) $\$ 15,300$b) $\$ 56,100$c) $\$ 41,600$

Intro Stats / AP Statistics

Chapter 13

Multiple Regression

Descriptive Statistics

Linear Regression and Correlation

Cairn University

Oregon State University

University of St. Thomas

Boston College

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Management proposed th…

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Management proposed the fo…

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