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23-64)LetYtbe the sales during montht(in thousands of dollars) for a photography studio, and letPtbe the price charged for portraits during montht. The data are in the fileWeek 4 Assignment Chapter 12 Problem 64

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. 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, et, is an error term.

1. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21?
2. Does there appear to be a problem with autocorrelation of the residual? Explain your answer.