Management proposed the following regression model to predict sales at a fast-food outlet. y = Po + ₁x₂ + ₂x₂ + Bzx3 + €

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Management Proposed The Following Regression Model To Predict Sales At A Fast Food Outlet Y Po X X Bzx3 1 (25.59 KiB) Viewed 11 times

Management proposed the following regression model to predict sales at a fast-food outlet. y = Po + ₁x₂ + ₂x₂ + Bzx3 + € where X₁ number of competitors within one mile X₂= population within one mile (1,000) $1 if drive-up window present 0 otherwise y sales ($1,000s). The following estimated regression equation was developed after 20 outlets were surveyed. 9-10.7-4.2x₁ + 6.8x₂ +15.3x3 (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 a 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 no drive-up window.