Recall the given regression equation
Å· = 26 + 11x1 + 8x2
where x1 is the inventory investment ($1,000s), x2 is the advertising expenditures ($1,000s), and y is the sales ($1,000s). We are to predict the sales from a $16,000 investment in inventory and an advertising budget of $12,000.
Since the regression equation uses the variables in terms of $1,000s, the given values need to be converted before being substituted into the given regression equation. Therefore, the values for inventory investment and advertising budget should first be ---Select--- divided multiplied by 1,000.
The value that will be substituted into the regression equation for a $16,000 inventory investment will be
x1 =
and the value that will be substituted into the regression equation for a $12,000 advertising budget will be
x2 = .