A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ŷ 25+ 10x₁ + 8x2 where X₁ inventory investment ($1,000s) X2 = advertising expenditures ($1,000s) y sales ($1,000s). (a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $10,000. $ (b) Interpret b₁ and b₂ in this estimated regression equation. Sales can be expected to increase by $ be expected to increase by $ for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can for every dollar increase in advertising expenditure when inventory investment is held constant.
A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. ŷ 25+ 10x₁ + 8x2 where X₁ inventory investment ($1,000s) X2 = advertising expenditures ($1,000s) y sales ($1,000s). (a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $10,000. $ (b) Interpret b₁ and b₂ in this estimated regression equation. Sales can be expected to increase by $ be expected to increase by $ for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can for every dollar increase in advertising expenditure when inventory investment is held constant.
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter4: Calculating The Derivative
Section4.CR: Chapter 4 Review
Problem 87CR
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Transcribed Image Text:A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.
ŷ = 25 + 10x₁ + 8x2
where
X1 inventory investment ($1,000s)
x2
advertising expenditures ($1,000s)
y =
sales ($1,000s).
(a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $10,000.
=
=
(b) Interpret b₁ and b₂ in this estimated regression equation.
1
2
Sales can be expected to increase by $
be expected to increase by $
for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can
for every dollar increase in advertising expenditure when inventory investment is held constant.
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