Assume that a company believes that number of sales is a function of marketing budget and sales budget. Let x1 represent the marketing budget and x2 represent the sales budget. They collect some data and come up with the following regression model: y = 20000 + 0.5x1 + 0.1x2

a. What is the value of b1? Interpret its value.

b. What is the value of b2? Interpret its value.

c. What is the value of b0? Interpret its value.

d. If the company has a budget of $10000 for marketing and $15000 for sales, what is the estimated number of sales.

e. What are the explanatory variables?

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In the given regression model the coefficients represent the relationship between the dependent vari... View the full answer