The director of marketing at Reeves Wholesale Products is studying the monthly s

Question

The director of marketing at Reeves Wholesale Products is studying the monthly sales. Three independent variables were selected as estimators of sales: regional population (X_1), per capita income (X_2), and regional unemployment rate (X_3). The regression equation was computed (in dollars) as follows. Y = 149, 200 + 12.00X_1 + 13.7X_2 - 21, 300X_3 a. Choose the right option for the full name of the equation b. Interpret the number 149, 200. c. What are the estimated monthly sales for a particular region with a population of 796,000, per capita income of $6, 940, and an unemployment rate of 6%?

Explanation / Answer

c) Y = 149200 + 12.1 * X1 + 13.7 * X2 - 21.3 * X3

X1 = 79600

X2 = 6940

X3 = 0.06

Y = 149200 + 12.1 * X1 + 13.7 * X2 - 21.3 * X3

   = 149200 + 12.1 * 796000 + 13.7 * 6940 - 21.3 * 0.06

   = 9875876.722 (ans)

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