Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and let Pt be the price charged for portraits during month t. Use regression to fit the following model to these data: Yt = a + b1Yt−1 + b2Pt + et This equation indicates that last month’s sales and the current month’s price are explanatory variables. The last term, et, is an error term. a. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21? b. Does there appear to be a problem with autocorrelation of the residual?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
| Sales | Price |
| $400,000 | $15 |
| $1,042,000 | $12 |
| $1,129,000 | $24 |
| $1,110,000 | $18 |
| $1,336,000 | $18 |
| $1,363,000 | $30 |
| $1,177,000 | $27 |
| $603,000 | $24 |
| $582,000 | $36 |
| $697,000 | $27 |
| $586,000 | $24 |
| $673,000 | $27 |
| $546,000 | $30 |
| $334,000 | $33 |
| $27,000 | $24 |
| $76,000 | $27 |
| $298,000 | $30 |
| $746,000 | $18 |
| $962,000 | $21 |
| $907,000 | $24 |
Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and let Pt be the price charged for portraits during month t. Use regression to fit the following model to these data:
Yt = a + b1Yt−1 + b2Pt + et
This equation indicates that last month’s sales and the current month’s price are explanatory variables. The last term, et, is an error term.
a. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21?
b. Does there appear to be a problem with autocorrelation of the residual?
show all your working (Including excel data) and explain your answer.
Previous writer did not answer all questions as asked and used wrong model(Y1 =a+b1P1+b2Yt−1). Please answer all questions as asked
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