Question

Andy works for a food vendor and wants to determine how the annual sales, in dollars, for a food truck is related to the average review of the food truck (on a 100-point scale) on a business review website and the number of hours per week that the food truck is open. What is the correct format for a multiple regression equation?

Answer 1

The format for this regression model is

`y=b_0+b_1*x_1+b_2*x_2`

Being

y=annual sales.

x1=website average review points.

x2=number of open hours per week.

b0, b1, b2= parameters to be estimated by regression (error minimization).

Step-by-step explanation:

In a multiple regression model we have an dependent variable (y), which we want to predict with this model, and the independent variables (x1,x2,...), which it is estimated that are the source of variability ot the dependent variable.

In this case, we want to predict annual sales. This is our dependent variable (y).

The independent variables are the review points in the website (x1) and the number of hours per week the food truck is open (x2).

The format for this regression model is

`y=b_0+b_1*x_1+b_2*x_2`

Being

y=annual sales.

x1=website average review points.

x2=number of open hours per week.

b0, b1, b2= parameters to be estimated by regression (error minimization).