Question

eBook A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. y = 35 + 9.21 + 7x2 where 21 = inventory investment ($1000s) 12 = advertising expenditures ($1000s) y = sales ($1000s) a. Predict the sales resulting from a $15,000 investment in inventory and an advertising budget of $10,000. b. Interpret bi and b2 in this estimated regression equation. - Select your answer - ] by $9 for every dollar increase in - Select your answer - when - Select your answer is held bi: Sales can be expected to constant. - Select your answer - by $7 for every dollar increase in - Select your answer - when - Select your answer is held b2: Sales can be expected to constant.

Answer 1

Here

y = 35 + 9x1 + 7.42

a. Now for x1=15000 and x2=10000

y = 35 + 9.21 + 7x2 = 35+ (9* 15000) +(7* 10000) = 205035

b. b1 is Sales can be expected to increase by $9 for every dollar increase in inventory investment when advertising expenditures is held constant.

b2 is Sales can be expected to increase by $7 for every dollar increase in advertising expenditures when inventory investment is held constant.