Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales β0 + β1Population + β2Income + , where Sales refers to the sales of StrongBones ($ millions), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 ($1,000s). She collects data on 38 cities across the United States and obtains the following relevant regression results:

a. What is the sample regression equation?
b. Interpret the slope coefficients.
c. Predict sales if a city has 1.5 million women over the age of 60 and their average income is$44,000.

  • CreatedJanuary 28, 2015
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