Milton Maxwell Foods is attempting to use regression analysis to identify factors which might explain the behavior of sales revenue (measured in $ millions) for its franchise restaurants. Dummy variable x5 has been included in the regression model to indicate whether a particular restaurant has curb service. This variable will be assigned a value of β = 0 if the restaurant has no curb service, and a value of 1 if the restaurant has curb service. Suppose the estimated regression coefficient for x5 turns out to be .136. Interpret this result.

  • CreatedJuly 16, 2015
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