Question

Given the regression equation for patient demand (y):y=15.6+0.57 satisfaction rating + 2.7 promotional expenditures, forecast patient demand if the Satisfaction Rating is 4.2 and $24,000 is spent on Promotional Expenditure.

Answer 1

To forecast patient demand, plug in the Satisfaction Rating and Promotional Expenditure into the regression equation. The calculation yields an estimated patient demand of approximately 82.8 when the Satisfaction Rating is 4.2 and $24,000 is spent on Promotional Expenditure.

Step-by-step explanation:

To forecast patient demand using the given regression equation, we need to plug in the values for the Satisfaction Rating and Promotional Expenditure into the equation: y = 15.6 + 0.57 satisfaction rating + 2.7 promotional expenditures. With a Satisfaction Rating of 4.2 and $24,000 spent on Promotional Expenditure (which needs to be converted to the same unit used in the equation, let's assume thousands for this example), the equation would look like:

y = 15.6 + 0.57(4.2) + 2.7(24)

To calculate patient demand (y), we perform the following calculation:

y = 15.6 + 2.394 + 64.8

y = 82.794

This result indicates that when the Satisfaction Rating is 4.2 and $24,000 is spent on promotions, the forecasted patient demand is approximately 82.8, assuming the unit of measurement for y is consistent with the units used throughout the regression equation.