Question
At the end of the first fiscal quarter, which ended on the last day of last month, the research team at Finer Diner computed the
At the end of the first fiscal quarter, which ended on the last day of last month, the research team at Finer Diner computed the following model as a means of predicting monthly gross revenues:
Gross revenues (Y) = 618.4 + 282.68(Advertising Expenditures) + 95.43(Number of Nights with Live Entertainment)
Y = Gross revenues (monthly)
X1= Advertising Expenditures (monthly)
X2= Number of Nights with a Band Present (monthly)
Calculatedp-values for Advertising Expenditures and Number of Nights with Live Entertainment are 0.00005 and 0.35 respectively.
Currently, the restaurant spends $500 per month on advertising and has live entertainment fifteen nights per month.
Based on the current model andp-values:
Predictgross revenues if the restaurant raised monthly advertising expenditures by 15%, 25%, and 50%.
Predictgross revenues if the restaurant provided live entertainment 12 nights per month, 20 nights per month, and 24 nights per month.
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