Table 1: Eview Output Dependent Variable: SALES Method: Least squares Question 3 (d) Comment on the joint significance of the explanatory variables. Hint: Provide a brief explanation of statistic used to measure the joint significance and then identify the statistic on the Eviews Output provided and comment (5 Marks). Variable Coefficient Std. Error t-Statistic Prob. Question 3 (c) 0.0000 PRICE ADVERT -7907.854 1.862584 118913.6 1095.993 0.683195 6351.638 -7.215241 2.726283 18.72172 0.0080 0.0000 C Comment on the goodness of fit of model. Hint: Provide a brief explanation of statistic used to measure goodness of fit and then identify the statistic on the Eviews Output provided and comment (5 Marks). ) 77374.67 6488.537 Question 4 19.86536 R-squared Adjusted R-squared 5.E. of regression Sum squared resid Log likelihood F-statistic Prob[F-statistic) 0.448258 Mean dependent var 0.432932 S.D. dependent var 4886.124 Akaike info criterion 1.72E-09 Schwarz criterion -741,9512 Hannan-Quinn critec 29.24786 Durbin-Watson stat 0.000000 19.95806 19.90238 2.183037 Over the past weeks since the business started operating there has been unexpected changes in weather, table 2 below shows a scatter plot of Daily temperature and sales revenue per day Relationship Between Sales Revenue and Temperature 30 Source: Own Computation 25 Question 3 (a) 20 15 Comment on the signs of the coefficients, Justify whether the signs align with prior expectations or not, also comment on the statistical significance using the P Value of each coefficient (10 Marks). 10 5 Question 3 (b) 0 0 1000 2000 3000 6000 7000 8000 9000 4000 5000 SALES REVENUE (ZAR) Estimate the Total Sales Revenue that the firm will get given that the firm has decided to charge a price of R50 per product and approve a budget of R20 000 for advertising expenditure (5 marks) Question 3 (c) Question 4 (a) Comment on the scatter plot in Table 2, forecast how sales Revenue is likely to respond to changes in seasons during the year and give the best to advice the business administrators (Hint: Advice should be based on relocation and seasonal operational adjustment to weather pattems) (7 Marks) Given relationship that has been established between sales revenue and price of product, what advice can you give to the administrators of company? Hint: Use knowledge of elasticity to come up with your answer (5 marks) Table 1: Eview Output Dependent Variable: SALES Method: Least squares Question 3 (d) Comment on the joint significance of the explanatory variables. Hint: Provide a brief explanation of statistic used to measure the joint significance and then identify the statistic on the Eviews Output provided and comment (5 Marks). Variable Coefficient Std. Error t-Statistic Prob. Question 3 (c) 0.0000 PRICE ADVERT -7907.854 1.862584 118913.6 1095.993 0.683195 6351.638 -7.215241 2.726283 18.72172 0.0080 0.0000 C Comment on the goodness of fit of model. Hint: Provide a brief explanation of statistic used to measure goodness of fit and then identify the statistic on the Eviews Output provided and comment (5 Marks). ) 77374.67 6488.537 Question 4 19.86536 R-squared Adjusted R-squared 5.E. of regression Sum squared resid Log likelihood F-statistic Prob[F-statistic) 0.448258 Mean dependent var 0.432932 S.D. dependent var 4886.124 Akaike info criterion 1.72E-09 Schwarz criterion -741,9512 Hannan-Quinn critec 29.24786 Durbin-Watson stat 0.000000 19.95806 19.90238 2.183037 Over the past weeks since the business started operating there has been unexpected changes in weather, table 2 below shows a scatter plot of Daily temperature and sales revenue per day Relationship Between Sales Revenue and Temperature 30 Source: Own Computation 25 Question 3 (a) 20 15 Comment on the signs of the coefficients, Justify whether the signs align with prior expectations or not, also comment on the statistical significance using the P Value of each coefficient (10 Marks). 10 5 Question 3 (b) 0 0 1000 2000 3000 6000 7000 8000 9000 4000 5000 SALES REVENUE (ZAR) Estimate the Total Sales Revenue that the firm will get given that the firm has decided to charge a price of R50 per product and approve a budget of R20 000 for advertising expenditure (5 marks) Question 3 (c) Question 4 (a) Comment on the scatter plot in Table 2, forecast how sales Revenue is likely to respond to changes in seasons during the year and give the best to advice the business administrators (Hint: Advice should be based on relocation and seasonal operational adjustment to weather pattems) (7 Marks) Given relationship that has been established between sales revenue and price of product, what advice can you give to the administrators of company? Hint: Use knowledge of elasticity to come up with your