Question: Kim K. asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model, y = 4

Kim K. asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model, y = 4 + 3.36x1 + 5x2, with the undernoted parameters.

Parameters: R2= 0.88

Sig of F: 0.04

p-value of x1= 0.05

p-value of x2= 0.04

x1 denotes Consumer Income

x2 denotes Advertising

y denotes Demand

Kim asks you the following question please answer it.

What value of x1 would result in a forecasted value of 55.80 for y? x2 = 7.

a.

70
b.

5
c.

8
d.

9

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