A shoe store developed the renewing eso'mated regression equation relating sales to inventory investment and advertising expenditures. 9 : 21 + 10x1 + 7x2 Where x1 : inventoryinvestment (51,0005) x2 : advertising apenditures ($1,0uns) y : sales ($1,000:). (a) predict the sales (in dollars) resulting (mm a $14,000 investment in inventory and an advertising budget uf $10,000. 21-; 210021 X (b) interpret b1 and b2 in tnis estimated regression equation. Sales can be expected to increase by s 140mm x for every dollar increase in inventory investment when advertising expenditure is held Cunstant. Sales can he expected to increase by is 70mm at far every dollar increase in advertising expenditure when inventory investment is held constant. Spring is a peak time for selling houses. The table below contains the selling price, number of bathrooms, square footage, and number of bedrooms of 26 homes in a certain city. Selling Price Baths Sq Ft Beds Selling Price Baths Sq Ft Beds 160,000 1. 1,766 295,000 2.5 1,860 170,000 2 1,768 325,000 2 2,056 178,000 1,219 3 325,000 3.5 2,776 182,500 1 1,558 2 328,400 2 1,408 195,100 1.5 1,125 3 331,000 1,5 1,972 3 212,500 2 1,196 2 344,500 2.5 1,736 3 245,900 2 2,128 3 365,000 2.5 1,990 250,000 3 1,280 3 385,000 2.5 3,640 255,000 2 1,596 3 395,000 2.5 1,908 258,000 3.5 2,374 399,000 2 2,108 3 267,000 3.5 2,439 3 430,000 2 2,462 268,000 2 1,470 430,000 2 2,615 275,000 2 1,688 454,000 3.5 3,700 4 (a) Develop scatter plots of selling price versus number of bathrooms. 500 000 - 500 000 - 450 000 500 000 450 000 500 000 - 400 000 450 000 400 000 450 000- 350 000 - 400 000 350 000 - 100 000 - 300 000 350 000- 300 000 - 350 000 - . co .. 300 000 .. .. Selling Price 250 00 250 000 . . . 300 000 Selling Price Selling Price 200 000 250 000 Selling Price 250 000 - 200 000 150 000 200 000 150 000 200 000 - 100 000 150 000 100 000 150 000 50 000- 100 000 100 000 50 000 50 000 50 000 - 0.5 1.5 2. 2.5 3.5 0.5 1.5 2 . 2.5 3. 3. 0.5 1. 1.5 Number of Bathrooms 2. 2.5 3. 3.5 0.5 1.5 AC Number of Bathrooms 2 . 2.5 3 . 3.5 Number of Bathrooms Number of Bathrooms What is the relationship between the selling price of a house and the number of bathrooms in it? O As the number of bathrooms increases, the selling price increases. O As the number of bathrooms increases, the selling price decreases