Question

The following regression model has been proposed to predict sales at a computer store:

y_hat = 50 – 3x₁ + 20x₂ + 10x₃

where

x₁ = competitor's previous day's sales (in $1000s)

x₂ = population within 1 mile (in 1000s)

x₃ =  ​1 if any radio advertising was used and 0 otherwise.

y_hat= sales (in $1000s)

Predict the change in sales (in dollars) when radio advertising was used, all else constant.

This, is from question one if needed; Predict sales (in dollars) for a store with the competitor's previous day's sale of $5000, a population of 20,000 within 1 mile, and nine radio advertisements.

Answer 1