Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Advertising Expenditure $ 000 51 58 62 65 68 76 77 78 78 84 85 Membership Subscriptions (i) Plot the scattergraph for the data. 62 68 66 66 57 72 73 72 78 75 76 67 73 (ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising.
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Advertising Expenditure $ 000 51 58 62 65 68 76 77 78 78 84 85 Membership Subscriptions (i) Plot the scattergraph for the data. 62 68 66 66 57 72 73 72 78 75 76 67 73 (ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:MovieFlix - Advertising and
Subscriptions
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Advertising Expenditure
$ 000
51
58
62
65
68 75 77 78 78 84 85
76
Membership Subscriptions
(1) Plot the scattergraph for the data.
62
68
66
66
欲 72 73 72 78 73 75
67
76
(ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership.
(iii) Estimate the membership if $40 000 is spent on advertising.
(iv) How much must be spent on advertising to obtain a membership of 80 (000)?
(v) What is the nature of the relationship between advertising expenditure and membership?
(vi) Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected
method.
(vii) What are the limitations of the method used in (iii)?
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Follow-up Question
(iv) How much must be spent on advertising to obtain a membership of 80 (000)?
(v) What is the nature of the relationship between advertising expenditure and membership?
(vi)
(vii) What are the limitations of the method used in (iii) ?
Solution
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