b. Select your answer Selections for b1 and b2: \"increase or decrease\" Select

Question

b. Select your answer Selections for b1 and b2: "increase or decrease" Select your answer "inventory investment or advertsing expenditure" Select your answer "advertising expenditure or inventory investment."

A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. V = 30 + 12 + 7Z2 where #1 = inventory investment ($1000s) #2-advertising expenditures ($1000s) y sales (S$1000s) a. Predict the sales resulting from a $15,000 investment in inventory and an advertising budget of $10,000 b. Interpret bi and b2 in this estimated regression equation. b: Sales can be expected to Select your answer- by $12 for every dollar increase in -Select your answer- when -Select your answer- b2: Sales can be expected to Select your answer-by $7 for every dollar increase in Select your answer-when-Select your answer is held constant. is held constant.

Explanation / Answer

a) Predicted sales = 30 + (12*15) + (7*10) = 280

b) b1 : Sales can be expected to increase by $12 for every $1000 dollar increase in inventory investment when advertising expenditures is held constant.

b2 : Sales can be expected to increase by $7 for every $ 1000 dollar increase in advertising expenditures when inventory investment is held constant.

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