A shoe store developed the following estimated regression equation relating sales to
inventory investment and advertising expenditures where y = 25 + 10x₁ + 8x₂
x₁= inventory investment ($1000s)
x₂= advertising expenditures ($1000s)
y = sales ($1000s)
a. Predict the sales resulting from a $15,000 investment in inventory and an
advertising budget of $10,000.
b. Interpret b₁ and b₂ in this estimated regression equation.