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Let Y t be the sales during month t (in thousands of dollars) for a photography studio, and let P t be the price charged

Let Y_t be the sales during month t (in thousands of dollars) for a photography studio, and let P_t be the price charged for portraits during month t. The data are in the file P11_45.xlsx. Use regression to fit the following model to these data:

Yt=a+b1Yt1+b2Pt+et

This equation indicates that last month's sales and the current month's price are explanatory variables. The last term, e_t, is an error term.

a. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21?

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