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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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