# Question

Management proposed the following regression model to predict sales at a fast-food outlet.

y = β0 + β1x1 + β2x2 + β3x3 + ε

Where

The following estimated regression equation was developed after 20 outlets were surveyed.

y-bar = 10.1 – 4.2x1 + 6.8x2 + 15.3x3

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 8000 within one mile, and no drive-up window.

c. Predict sales for a store with one competitor, a population of 3000 within one mile, and a drive-up window.

y = β0 + β1x1 + β2x2 + β3x3 + ε

Where

The following estimated regression equation was developed after 20 outlets were surveyed.

y-bar = 10.1 – 4.2x1 + 6.8x2 + 15.3x3

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 8000 within one mile, and no drive-up window.

c. Predict sales for a store with one competitor, a population of 3000 within one mile, and a drive-up window.

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