Question

Question 20

A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
where:
Ŷ = daily sales in ($)
X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)




What is the y-intercept (a)

		$5000
		$200
		$100
		None of the above

QUESTION 21

1. Use "ice cream store" scenario for all of the following questions 20-25:

   Use the following to answer questions 20-25:
   A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
   The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
   where:
   Ŷ = daily sales in ($)
   X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
   X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
   X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)
   
   
   
   What is the daily sales on a day where $500 is spent in advertising; no (0) additional staff; average temperature is 70 degrees

   		$5000
   		$2500
   		$7500
   		None of the above

QUESTION 22

Use the following to answer questions 20-25:
A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
where:
Ŷ = daily sales in ($)
X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)


Using the same scenario above, what would the daily sales be with $300 in advertising sales; one additional staff member; and average temperature of 65 degrees?

		$5000
		$6200
		$7500
		$7700

QUESTION 23

1. Use the following to answer questions 20-25:
   A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
   The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
   where:
   Ŷ = daily sales in ($)
   X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
   X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
   X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)
   
   
   Using the same scenario above, What would the daily sales be on a day you spent 0$ advertising dollars; no additional staff, with the average temperature of 100 degrees?

   		$8000
   		$6200
   		$7500
   		$7700

QUESTION 24

1. Use the following to answer questions 20-25:
   A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
   The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
   where:
   Ŷ = daily sales in ($)
   X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
   X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
   X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)
   
   
   How many independent variables, slopes, dependent variables, and values for the y intercept are ?

   		3 independent variables, 3 slopes, 1 dependent variable, 1 y intercept.
   		1 independent variable, 1 slope, 3 dependent variables, 3 y intercepts
   		1 independent variables, 1 slopes, 1 dependent variable, 1 y intercept
   		None of the above

QUESTION 25

1. Use the following to answer questions 20-25:
   A really cool ice cream store owner developed a model to relate to his ice cream shop sales (Y) to the amount of advertising dollars he spent (X1) to the number of extra smiling faces he put on staff for the day (X2) to the degrees in average daily temperature above 70 degrees (X3) ((At 70 degrees X3=)(at 70 degrees X3=0 )
   The multiple regression equation for this model is: Ŷ=$5000 + $500(X1) + $200(X2) + 100(X3)   
   where:
   Ŷ = daily sales in ($)
   X1= advertising dollars spent in $100 increments (for $100 in advertising dollars spent X1 =1)
   X2= extra staff member in increments of 1 up to 4. Above 4 no more added sales.
   X3= average daily temperature above or below 70 degrees in one degree increments, (at 70 degrees X3=0)
   
   
   Using the same scenario above, Under what conditions would you add a 5th additional staff member?

   		When you spend $2000 on advertising
   		When the District Manager is in town
   		On a Very Hot Day
   		Never

Answer 1

20. Y-intercept is $5000

21. Daily sale on a day when $500 is spent on advertising,no additional staff added, and average temperature is 70 degree is $7500

22. Daily sale at given condition is $6200

23. Daily sale at given condition is $8000

24. There 3 independent variable, 3 slope, 1 dependent variable and one y-intercept.

25. We will Never add 5th additional staff member at given conditions.

Complete solution is given in attached images:

Thank You.