N5 Management proposed the following regression model to predict sales at a fast-food outlet.y = Bo+ Bx + B,x, + B,t, + ewherex = number of competitors within one mileX2 = population within one mile (1000s)lif drive-up window presentX =l0 otherwisey = sales ($1000s)The following estimated regression equation was developed after 20 outlets were surveyed.ý = 10.1 – 4.61 + 6.6x2 + 15.6r3a. What is the expected amount of sales attributable to the drive-up window?b. Predict sales for a store with two competitors, a population of 8,000 within one mile, and no drive-up window.Estimate of sales = $c. Predict sales for a store with one competitor, a population of 4,000 within one mile, and a drive-up window.Estimate of sales = $%24

*Answer: SOL : Estimated regression equation is as follows - Y = 10.1 - 4.6x1 + 6.6x2 + 15.6x3 (a)…

Answered: Sales at Management proposed thể…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1E

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