1-

2-

The estimated regression equation for a model involving two independent variables and 10 observations follows. y^=25.1170+0.5208x1+0.4930x2 (a) Interpret b1 in this estimated regression equation. b1=0.5208 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b1=0.4930 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b1=25.1170 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b1=0.5208 is an estimate of the change in y corresponding to a 1 unit change in x2 when x1 is held constant. b1=0.4930 is an estimate of the change in y corresponding to a 1 unit change in x2 when x1 is heid constant. Interpret b2 in this estimated regression equation. b2=0.4930 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b2=0.4930 is an estimate of the change in y corresponding to a 1 unit change in x2 when x1 is held constant. b2=25.1170 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b2=0.5208 is an estimate of the change in y corresponding to a 1 unit change in x1 when x2 is held constant. b2=0.5208 is an estimate of the change in y corresponding to a 1 unit change in x2 when x1 is held constant. (b) Predict y when x1=180 and x2=340. A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. y=29+12x1+7x2 where x1x2y=inventoryinvestment($1,0005)=advertisingexpenditures($1,000s)=sales($1,000s). (a) Predict the sales (in dollars) resulting from a $15,000 investment in inventory and an advertising budget of $11,000. (b) Interpret b1 and b2 in this estimated regression equation. Sales can be expected to increase by $ for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $ for every dollar increase in advertising expenditure when inventory investment is held constant