Question
iven the following regression result: X = Advertising Expenditures next month Y = Units Sold Next Month SUMMARY OUTPUT Regression Statistics Adjusted R Square 0.73
iven the following regression result: X = Advertising Expenditures next month Y = Units Sold Next Month SUMMARY OUTPUT Regression Statistics Adjusted R Square 0.73 Standard Error 200.00 Observations 36 Coefficients Intercept 1000.00 X (Advertising $) 30.00 a. If you are going to spend $400 on advertising (X = $400) next month, forecast units sold. Assuming your forecast is 13,000 units, complete b. through e. b. Construct a 99% confidence interval around your forecast. c. How many units should be produced to be 97% certain that there will be enough? d. If the company sells 12,600 units or less next month, it will not generate enough cash flow for a debt payment that is due. What is the probability that the company will sell 12,600 units or less? e. What percent of the variation in Units Sold is explained by Advertising Expenditures?
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