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.
Answer 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?