Question
A baker in Julien would like to increase profits from his apple pie business. He collected data for the last 15 weeks. a) What would
A baker in Julien would like to increase profits from his apple pie business. He collected data for the last 15 weeks.
a) What would be the impact on his profitability of increasing the price of a pie by $1?
b) What would be the impact on profitability of increasing his advertising budget by $1,000?
c) What would be the impact on profitability of implementing both simultaneously?
Week | Pie Sales | Pie Price ($) | Weekly Advertising ($) |
1 | 350 | 5.50 | 3,300 |
2 | 460 | 7.50 | 3,300 |
3 | 350 | 8.00 | 3,000 |
4 | 430 | 8.00 | 4,500 |
5 | 350 | 6.80 | 3,000 |
6 | 380 | 7.50 | 4,000 |
7 | 430 | 4.50 | 3,000 |
8 | 470 | 6.40 | 3,700 |
9 | 450 | 7.00 | 3,500 |
10 | 490 | 5.00 | 4,000 |
11 | 340 | 7.20 | 3,500 |
12 | 300 | 7.90 | 3,200 |
13 | 440 | 5.90 | 4,000 |
14 | 450 | 5.00 | 3,500 |
15 | 300 | 7.00 | 2,700 |
This is an example of multivariable regression analyses.
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