Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors' advertising expenditures (thousands of dollars), X3 = advertised price(dollars per unit).
(a) Write the fitted regression equation.
(b) Interpret each coefficient.
(c) Would the intercept seem to have meaning in this regression?
(d) Make a prediction for Sales when FloorSpace = 80, CompetingAds = 100, and Price = 1,200.
(a) The fitted regression equation is Y = 11.52 X1 - 6.935 X2 - 0.1496 X3 + 1225, that is
Total Sales in thousands of dollars = 11.52 * Display floor space in square m - 6.935 * Competitors' advertising expenditures in thousands of dollars - 0.1496 * Advertised price in ...
The regression model in statistics is examined. A complete, neat and step-by-step solution is provided in the attached file.