Table 14.4
The Furniture Super Mart is a furniture retailer in Evansville,Indiana.The Marketing Manager wants to prepare a media budget based on the next quarter's business plan.The manager wants to decide the mix of radio advertising and newspaper advertising needed to generate varying levels of Weekly Gross Revenue.The manager has collected data for the past five weeks,and has recorded the following average Weekly Gross Revenues and expenditures for Weekly Radio (X1)and Newspaper (X2)advertising:
The Manager uses the multiple regression model in OM Explorer and obtains the following results:
-Use the information provided in Table 14.4.What amount of Weekly Gross Revenue can be expected for a week in which no radio or newspaper advertising is purchased? (Assume all other variables are held constant. )

Question

Table 14.4
The Furniture Super Mart is a furniture retailer in Evansville,Indiana.The Marketing Manager wants to prepare a media budget based on the next quarter's business plan.The manager wants to decide the mix of radio advertising and newspaper advertising needed to generate varying levels of Weekly Gross Revenue.The manager has collected data for the past five weeks,and has recorded the following average Weekly Gross Revenues and expenditures for Weekly Radio (X1)and Newspaper (X2)advertising:
  The Manager uses the multiple regression model in OM Explorer and obtains the following results: 
-Use the information provided in Table 14.4.What amount of Weekly Gross Revenue can be expected for a week in which no radio or newspaper advertising is purchased? (Assume all other variables are held constant. )

Quizplus · Accepted Answer

When there is no radio or newspaper advertising, X1 and X2 equal 0. Therefore, using the regression equation, the expected value of Y (Weekly Gross Revenue) would be:
Y = 9430 + (3160)(0) + (3500)(0)
Y = $20,500

Table 14.4 The Furniture Super Mart Is a Furniture Retailer in Evansville,Indiana.The