The Following Regression Model Has Been Proposed to Predict Sales

Essay

The following regression model has been proposed to predict sales at a furniture store. = 10 - 4x₁ + 7x₂ + 18x₃
where
x₁ = competitor's previous day's sales (in $1,000s)
x₂ = population within 1 mile (in 1000s)
x₃ = 1 if any form of advertising was used, 0 if otherwise = sales (in $1,000s)
a.Fully interpret the meaning of the coefficient of x₃.
b.Predict sales (in dollars) for a store with competitor's previous day's sale of $3,000, a population of 10,000 within 1 mile, and six radio advertisements.