You are the manager of a local retail store. To help make decisions within your organization, you recently completed your MBA with an emphasis in business analytics. You have developed the following estimated regression equation to help make data-driven decisions for the store. 

Y = 22,100 - 412x₁ + 818x₂ - 93x₃ - 71x₄

Where:

·Y = weekly sales

·x₁ = local unemployment rate

·x₂ = weekly average high temperature

·x₃ = number of activities in the local community

·x₄ = average price of gasoline per gallon

Instructions

Use the above equation and information to answer the following questions in a Word document, and create a guideline to use for future business decisions: 

1. Based on the equation above, please provide the value for x₁, x₂, x₃, and x₄. Also, explain what these values mean in the context of this question. For example: What does the value of 818 mean in the equation above (specify if it is x₁ or x₂ or x₃ or x₄, and explain what those values mean based on the equation and context)?
2. What are the estimated weekly sales if the unemployment rate is 3.7%, the average high temperature is 67⁰, there are 10 activities, and the average price of gasoline is $3.39 per gallon? 
3. What recommendations or decisions could you make based on the predictive analysis in question 2?

1.    b₁ = -412. This implies that, holding the other independent variables constant and increasing the local unemployment rate by one percent, the average weekly sales is estimated to decrease by 412 dollars.
2. b₂ = 818. This implies that, holding the other independent variables constant and increasing the weekly average high temperature by one degree, the average weekly sales is estimated to increase by 818 dollars.
3. b₃ = -93. This implies that, holding the other independent variables constant and increasing the number of local activities by one, the average weekly sales is estimated to decrease by 93 dollars.
4. b₄ = -71. This implies that, holding the other independent variables constant and increasing the average gasoline price by one dollar, the average weekly sales is estimated to decrease by 71dollars.

Answer rating: 100% (QA)

Based on the equation above please provide the value for x1 x2 x3 and x4 Also explain what these values mean in the context of this question For examp... View the full answer