For this assignment, you are required to complete problem #64 (Chapter 12) on page 593 of the textbook. Use the appropriate Excel file templates from www.cengagebrain.com. Once complete, post your Excel Document in Waypoint. Show all work.

23-64)LetYtbe the sales during montht(in thousands of dollars) for a photography studio, and letPtbe the price charged for portraits during montht. The data are in the fileWeek 4 Assignment Chapter 12 Problem 64. 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.

1. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21?
2. Does there appear to be a problem with autocorrelation of the residual? Explain your answer.

Attached is the wording out of the book just in case as well as the data required.

I cannot figure this out for the life of me. Please post as an excel doc. so I can see and understand the formulas or I likely won't be able to accept the answer.

Additionally, we use StatTools a lot so if you utilize that I would be eternally grateful although I understand not everyone has it.

\fSales $400,000 $1,042,000 $1,129,000 $1,110,000 $1,336,000 $1,363,000 $1,177,000 $603,000 $582,000 $697,000 $586,000 $673,000 $546,000 $334,000 $27,000 $76,000 $298,000 $746,000 $962,000 $907,000 Price $15 $12 $24 $18 $18 $30 $27 $24 $36 $27 $24 $27 $30 $33 $24 $27 $30 $18 $21 $24