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Exercise 18-41 Algo Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect

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Exercise 18-41 Algo Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation Sales = 13.93+0.04 Advertising CostsM -0.59Unemployment Rate -1 a. Hirosh had budgeted $680 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 at the unemployment rate in May 2009 was 9.6%. (Enter your answer in dollars not in thousands) Sales b. What will be the forecast if he raises his advertisement budget to $770? (Enter your answer in dollars not in thousands.) Salese c. Reevaluate the above forecasts. If the unemployment rate was 10% in May 2009. (Enter your answers in dollars not in thousands.) Advertising Sales 680 720

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