Question: nheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253%252F%252Fathens.blackboard.com%252Fwebapps%252Fportal%2 Assignment Chapter 18 i Saved Exercise 18-41 Algo Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive

nheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253%252F%252Fathens.blackboard.com%252Fwebapps%252Fportal%2 Assignment Chapter 18 i Saved Exercise 18-41 Algo 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, =19.45 + 0.05Advertising Costst-1 - 0.57Unemployment Ratet-1- a. Hiroshi had budgeted $700 toward advertising costs in May 2009. Make a forecast for Sales for June 2009 if the unemployment rate in May 2009 was 9.7%. (Enter your answer in dollars not in thousands.) Salest $ 1 b. What will be the forecast if he raises his advertisement budget to $730? (Enter your answer in dollars not in thousands.) Salest $ 1 c. Reevaluate the above forecasts if the unemployment rate was 10.3% in May 2009. (Enter your answers in dollars not in thousands.) Advertising Sales, 700 730
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
