QUESTION 5 Table 1 shows Market Response (Y) with only one independent variable, Advertising Activity (X) is said to follow ADBUDG model. Y 0 Sales Region A B C D E F G H I J 000 V AWNO 2 3 4 5 6 939988 30 33 40 45 50 62 68 72 75 85 8 9 Table 1 The ADBUDG model is calibrated using Excel Solver. The initial set-up is shown in Figure 3. a) State the suitable initial values for all parameters. (2 marks) b) Is ADBUDG model suitable for this data? Why or Why not? (3 marks) 121 B D C Y E (Y-Yhat)^2 G H X Yhat TSS Sales 1 Region 2 A 3 B a b d 0 30 0.0 676 Initial Values 30.0 35.5 33 529 1 2 4 C 256 5 3 121 6 E 4 36 7 Immo F % 5 6 7 8 6.3 47.9 156.3 231.0 71.3 36.0 19.9 10.4 30.3 609.31 40 45 50 62 68 72 75 85 56 G 46.9 57.5 65.2 70.4 74.0 76.5 78.2 79.5 613.7 36 144 H 10 8 WS 5 L 1 J 11 9 256 361 841 3256 12 13 R^2 14 15 16 QUESTION 5 Table 1 shows Market Response (Y) with only one independent variable, Advertising Activity (X) is said to follow ADBUDG model. Y 0 Sales Region A B C D E F G H I J 000 V AWNO 2 3 4 5 6 939988 30 33 40 45 50 62 68 72 75 85 8 9 Table 1 The ADBUDG model is calibrated using Excel Solver. The initial set-up is shown in Figure 3. a) State the suitable initial values for all parameters. (2 marks) b) Is ADBUDG model suitable for this data? Why or Why not? (3 marks) 121 B D C Y E (Y-Yhat)^2 G H X Yhat TSS Sales 1 Region 2 A 3 B a b d 0 30 0.0 676 Initial Values 30.0 35.5 33 529 1 2 4 C 256 5 3 121 6 E 4 36 7 Immo F % 5 6 7 8 6.3 47.9 156.3 231.0 71.3 36.0 19.9 10.4 30.3 609.31 40 45 50 62 68 72 75 85 56 G 46.9 57.5 65.2 70.4 74.0 76.5 78.2 79.5 613.7 36 144 H 10 8 WS 5 L 1 J 11 9 256 361 841 3256 12 13 R^2 14 15 16