Sales, = 1011 + 004Advertising Costs-1- 0.68Unemployment Rate a. Hiroshi had budgeted $540 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 if the unemployment rate in May 2009 was 8.1%. (Enter your answer in dollars not in thousands.) Sales b. What will be the forecast if he raises his advertisement budget to $5607 (Enter your answer in dollars not in thousands.) Sales c. Reevaluate the above forecasts if the unemployment rate was 8.4% in May 2009. (Enter your answers in dollars not in thousands.) Sales $4 Advertising 540 560 %24
Sales, = 1011 + 004Advertising Costs-1- 0.68Unemployment Rate a. Hiroshi had budgeted $540 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 if the unemployment rate in May 2009 was 8.1%. (Enter your answer in dollars not in thousands.) Sales b. What will be the forecast if he raises his advertisement budget to $5607 (Enter your answer in dollars not in thousands.) Sales c. Reevaluate the above forecasts if the unemployment rate was 8.4% in May 2009. (Enter your answers in dollars not in thousands.) Sales $4 Advertising 540 560 %24
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please answer all three subparts with explanation.
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Transcribed Image Text: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, = 1011 + 004Advertising Costs-1-0.68Unemployment Rater
a. Hiroshi had budgeted $540 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 if the unemployment
rate in May 2009 was 8.1%. (Enter your answer in dollars not in thousands.)
Sales
b. What will be the forecast if he raises his advertisement budget to $560? (Enter your answer in dollars not in thousands.)
Šales
c. Reevaluate the above forecasts if the unemployment rate was 84% in May 2009. (Enter your answers in dollars not in thousands.)
Advertising
Sales,
540
%24
560
%24
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