Dawn Kaeding, sales manager of Gullo Arenas, is checking to see if there is any relationship between promotional costs and ticket revenues at the sports stadium. She obtains the following data for the past 9 months: (Click the icon to view the data.) She estimates the following regression equation Ticket revenues $43,814 + ($3.40 Promotional costs) Read the requirements Requirement 1. Draw the regression line and evaluate it using the criteria of economic plausibility, goodness of fit, and slope of the regression line Begin by plotting the regression line using April and December's advertising cost levels, then round the monthly revenues to the nearest increment of $100. (Enlarge the graph and use the line button displayed below to draw the graph) Clear all Check unsw 206 Data table Part 1 of 5 - X Month Ticket Revenues Promotional Costs April $ 230,000 $ 51,000 May 300,000 64,000 June 350,000 79,000 July 510,000 89,000 August 460,000 99,000 September 480,000 109,000 October 570,000 119,000 November 700,000 179,000 December 824,500 196,000 Print Done Requirements 1. Draw the regression line and evaluate it using the criteria of economic plausibility, goodness of fit, and slope of the regression line. 2. Use the high-low method to compute the function relating promotional costs and revenues. 3. Using (a) the regression equation and (b) the high-low equation, what is the increase in revenues for each $10,000 spent on promotional within the relevant range? Which method should Dawn use to predict the effect of promotional costs on revenues? Explain briefly. Print Done E Revenues Click the graph, choose a tool in the palette and fol... $898.888 $800,000 $760,000 $720,000- $680,000- $640,000 $600,000- $560,000- $520,000 $480,000 $440,000 $400,000 $360,000 $320,000- $280,000 $240,000 $200,000 $160,000 $120,000 $80,000 $40,000 $75,000 $110,000 $145,000 $180,000 Promotional Costs Delete Clear ? O X C X >>> Selected: none S 16