Chez Henri is a restaurant chain that operates in 40 different cities. It hired an economist to estimate the factors affecting the demand for its sales. The following equation was estimated using cross sectional data from each of its 40 restaurants.YAnnual restaurant sales (in thousands)X1Disposable per capital income (in thousands) of the residents living within 5 miles of a restaurantX2Population (in thousands) within a 5-mile radius of a restaurantX3Number of competing restaurants within a 5-mile radiusThe following information was obtained from the regression analysis:Multiple R: 0.92R-Square: 0.85Std. Error of Est.: 0.40Analysis of VarianceDFSum SquaresMean Sqr.F-StatRegression322073.318.2Residual36601.7VariableCoefficientStd. ErrorT-ValueConstant0.40.22.0X10.010.0042.5X20.020.0151.3X3-20.24.50-4.6Answer the following questions:a. Give the estimated demand equation for predicting restaurant sales.b. Provide an interpretation for each of the regression coefficients.c. Which of the coefficients are statistically significant and which are not? Explain.d. What percent of variation are restaurant sales explained by this equation?
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