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  3. a shoe store developed the following estimated reg

A shoe store developed the following estimated regression equation relating sales to inventory investment and...

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Accounting

A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.
hat(y)=25+12x1+8x2
where
x1= inventory investment ($1,000s)
x2= advertising expenditures ($1,000s)
y= sales ($1,000s).
(a) Predict the sales (in dollars) resulting from a $14,000 investment in inventory and an advertising budget of $11,000.
$
(b) Interpret b1 and b2 in this estimated regression equation.
Sales can be expected to increase by $
for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $
for every dollar increase in advertising expenditure when inventory investment is held constant.
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