An entrepreneur runs a website that sells car tires online. Based on the Regression output below, how much in Advertising Budget do you predict is needed to sell 40 tires per day. (round to the nearest dollar) SUMMARY OUTPUT Regression Statistics Multiple R 0.93303 R Square 0.87055 Adjusted R Square 0.85616 Standard Error 4.91656 Observations 11 Standard Error P-Value Coefficients Intercept 12.5671 3.16973 0.0032807 Advertising Budget 0.07224 009286 0.0000277

An entrepreneur runs a website that sells car tires online. Based on the Regression output below, how much in Advertising Budget do you predict is needed to sell 40 tires per day. (round to the nearest dollar) SUMMARY OUTPUT Regression Statistics Multiple R 0.93303 R Square 0.87055 Adjusted R Square 0.85616 Standard Error 4.91656 Observations 11 Standard Error P-Value Coefficients Intercept 12.5671 3.16973 0.0032807 Advertising Budget 0.07224 009286 0.0000277

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 14P: The following time series shows the sales of a particular product over the past 12...

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Tom uses his computer to calculate the following regression formula:Weekly total costs = $18,791 + ($19.97 * Number of orders per week) Draw the regression line on your graph. Use your graph to evaluate the regression line using the criteria of economic plausibility, goodness of fit, and significance of the independent variable. Is the cost function estimated using the high-low method a close approximation of the cost function estimated using the regression method? Explain briefly.
Curry Rubber manufactures rubber bands for retail companies. The accounting manager has performed a regression analysis of past data. You notice that the formula has an R-squared of 0.68, a t-value of 2.2, and a standard error of the estimate of $218,200. The estimate for next quarter costs is $2,597,623. Calculate Standard Error as a % of predicted total cost which represents a measure of precision of his regression analysis? (Round your answer to one decimal place, i.e., 0.052 = 5.2%.)
Jensen Tire Auto is deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). a. Develop a scatter chart with weekly usage hours as the independent variable. What does the scatter chart indicate about the relationship between weekly usage and annual maintenance expense? b. Use the data to develop an estimated regression equation that could be used to predict the annual maintenance expense for a given number of hours of weekly usage. What is the estimated regression model? c. Test whether each of the regression parameters 0 and 1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? d. How much of the variation in the sample values of annual maintenance expense does the model you estimated in part (b) explain? e. If the maintenance contract costs 3,000 per year, would you recommend purchasing it? Why or why not?
Subject: acounting
• Assume you run a bakery and you sell tarts. Below are the monthly data # tarts sold | total costs Jan 500 $500 Feb 350 $430 Mar 380 $470 Apr 540 $560 May 310 $320 Jun 360 $450 a) Estimate the fixed cost and variable cost using the high-low method. b) What are the fixed cost and variable cost using the Regression method? What is the R square? In this example, can you give ONE potential explanation why R square is not 1?
A clothing company has determined that if the price of a T-shirt is K40, then 150 will be demanded by T-shirt wearers. When the price is K45, then 100 T-shirts are demanded by T- shirts wearers.(a) Find the price-demand equation, assuming that it is linear.(b) Find the revenue function.(c) Find the number of items sold that will give the maximum revenue. What is the maximum revenue?(d) What is the price of each item when maximum revenue is achieved?
pays for a major portion of the cost of the marketing campaign. Calculate the last row, and check whether the total profit adds up correctly! Scenario One - No Price Change- Estimation of Batt-x's Profit from Gamma-Z Revenue Car Sales from Cost per Batt-X Batt-X Batt-X Growth # of Packs Price Per Gamma-Z Battery Pack Cost Profit Profit Year Car Sales Prediction Per Car Pack (SMillion) (SMillion) (SMillion) Growth -1 18,000 20 S 500 S 180 S 410 S 148 S 32 This Year 25,000 39% 20 S 500 S 250 S 410 S 205 S 45 39% +1 35,000 40% 20 $ 500 S 350 S 369 S 258 S 92 104% +2 50,000 43% 20 S 500 ? is Total Profit 337 Note: You expect cost per battery pack reduce 10% annually for the next two years.
Study the information given below and answer each of the following questions independently:Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value.Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.How many units must be sold if the company wishes to earn a net profit of R298 920.Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
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a) Calculate the contribution margin per unit.b) Calculate the number of units Beauty Supplies Company must sell each year to break even.c) Calculate the number of units Beauty Supplies Company must sell to yield a profit of $160,000.d) Managers may use Sensitivity analysis in their accounting system.i) What is sensitivity analysis? ii) How is Sensitivity analysis useful to managers?
Please use the attached information provided and please answer questions (attached also). Thanks.
A tree provider to plant nurseries is trying to use customer lifetime value to determine the value of its customers. Two customers are shown below. Use customer lifetime value to determine the importance of each customer. Use an 8 percent discount rate. Avg. Annual Sales Avg. Profit Margin 10% $12,500 $26,000 20% Do not round intermediate calculations. Round your answers to the nearest dollar. NPV (Customer A): $ NPV (Customer B): $ What do you recommend? Customer B ✓ Customer A: Customer B: is more important. Expected Lifetime 5 years 9 years