Question: Management proposed the following regression model to predict sales at a fast –food outlet.

Y = 0+ 1x1+ 2x2+ 3x3+E

Where: x1 = number of competitors within one mile

X2=population within one mile(1000s)

X3= 1 if drive-up window present

0 otherwise

y=sales ($1000s)

The following estimated regression was developed after 20 oulets were surveyed.

^y=10.1 -4.2x+6.8x2+15.3x3

What is the expected amount of sales attributed to the drive-up window?

Predict sales for the store with two competitors, population of 8000 within one mile, and no drive-up window.

B. Predict sales for a store with two competitors, a population of 8000 within one mile, and no drive –up window

c. Predict sales for a store with one competitor, population of 3000 within one mile, and a drive-up window.