The true regression model

Reference no: EM131087582

Let y = sales at a fast-food outlet (1000s of $), x₁ = number of competing outlets within a 1-mile radius, x₂₌ population within a 1-mile radius (1000s of people), and x₃ be an indicator variable that equals 1 if the outlet has a drive-up window and 0 otherwise. Suppose that the true regression model is

a. What is the mean value of sales when the number of competing outlets is 2, there are 8000 people within a 1-mile radius, and the outlet has a drive-up window?

b. What is the mean value of sales for an outlet without a drive-up window that has three competing outlets and 5000 people within a 1-mile radius?

c. Interpret ß₃.

Reference no: EM131087582

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