Explain how to use a multiple linear regression model to estimate future sales. Explain how the various independent variables might affect sales.
Explain how to use a multiple linear regression model to estimate future sales. Explain how the various independent variables might affect sales.
The
formula is
Yâ = B0 + bx1 +bX2 + bXn
where B0 is the y-axis intercept, b is the slope of the line, Yâ is the dependent variable, and X is the independent variable. Assume that you are
estimating the sale of gourmet pies, and include the following in your analysis:
Price of the pie
Price of the competitor’s pie
Inflation rate
Disposable income
Unemployment rate
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