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Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation: Sales(t) = 17.51 +0.05 Advertising Costs(t-1) – 0.70 Unemployment Rate t-1 Requirement: a. Hiroshi had budgeted $620 toward advertising costs in May 2009. Make a forecast in June 2009, if the unemployment rate in May 2009 was 9.1% b. What will be the forecast if he raises his advertisement budget to $700? c. Reevaluate the above forecast if the unemployment rate in May 2009 was 9.5%.

Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation: Sales(t) = 17.51 +0.05 Advertising Costs(t-1) – 0.70 Unemployment Rate t-1 Requirement: a. Hiroshi had budgeted $620 toward advertising costs in May 2009. Make a forecast in June 2009, if the unemployment rate in May 2009 was 9.1% b. What will be the forecast if he raises his advertisement budget to $700? c. Reevaluate the above forecast if the unemployment rate in May 2009 was 9.5%.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from
January 2008 to May 2009 to estimate the following sample regression equation:

Sales(t) = 17.51 +0.05 Advertising Costs(t-1) – 0.70 Unemployment Rate t-1

Requirement:

a. Hiroshi had budgeted $620 toward advertising costs in May 2009. Make a forecast in June
2009, if the unemployment rate in May 2009 was 9.1%
b. What will be the forecast if he raises his advertisement budget to $700?
c. Reevaluate the above forecast if the unemployment rate in May 2009 was 9.5%. 

 

Please, if possible, can you do the answer in Excel/Spreadsheet

ЗВ (15%) Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation: Sales, = 17.51 +0.05 Advertising Costs-1 – 0.70 Unemployment Rate.1 Hiroshi had budgeted $620 toward advertising costs in May 2009. Make a forecast in June 2009, if the unemployment rate in May 2009 was 9.1% b. What will be the forecast if he raises his advertisement budget to $700? c. Reevaluate the above forecast if the unemployment rate in May 2009 was 9.5%. а.
Transcribed Image Text:ЗВ (15%) Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation: Sales, = 17.51 +0.05 Advertising Costs-1 – 0.70 Unemployment Rate.1 Hiroshi had budgeted $620 toward advertising costs in May 2009. Make a forecast in June 2009, if the unemployment rate in May 2009 was 9.1% b. What will be the forecast if he raises his advertisement budget to $700? c. Reevaluate the above forecast if the unemployment rate in May 2009 was 9.5%. а.
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