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 = 105, 300 + 12.800X_1 + 6.8X_2 - 11,000X_3 a. Choose the right option for the full name of the equation: b. Interpret the number 105, 300. 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

Regression equation is,

y' = 105300 + 12.800x1 +6.8x2-11100x3

Where,

X1 :Regional population

X2 : Per capita income

X3: Regional Unemployment rate.

Given, x1 = 796000 , x2 = $6940 x3 =6% = 0.06

y' = 105300 + 12.800*796000 +6.8*6940-11100*0.06

y' = 10340626

Estimated monthly sales for perticular region is 10340626

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