• A) Mr. Safvon, the financial manager at the Lasn Keul restaurant, is checking to see if there is any relationship between newspaper advertising and sales revenuesat the restaurant. She obtains the following data for the past 10 months: 7 Month Revenues TK 50,000 March April 70,000 May June $5,000 July 65,000 August 55,000 65,000 September 45,000 October 80,000 November 55,000 December 60,000 TK 2,000 3,000 1,500 3,500 1,000 2,000 1,500 4,000, 2,500 2,500 She estimates the following regression equation: Advertising Costs Monthly revenues- TK39,502 + (TK8.723 Advertising costs) 1. Plot the relationship between advenising costs and revenues. 2. Draw the regression line and evaluate it using the criteria of economic plausibility, goodness of fit, and slope of the regression line. 3. Use the high-low method to compute the function, relating advertising cost and revenues. 4. Using (a) the regression equation and (b) the high-low equation, what is the increase in revenues for.each TK1,000 spent on advertising within the relevant range? Which method should Martinez use to predict the effect of advertisingcosts on revenues? Explain briefly. b) Define learning curve. Describe three criteria for evaluating cost functions and chorrans cost drivers.