Question
The accompanying data show your company's monthly sales, advertising budget, and svlesteam's commission rate. Find the best relationship that shows sales as a function of
The accompanying data show your company's monthly sales, advertising budget, and svlesteam's commission rate. Find the best relationship that shows sales as a function of advertising and the commission rate .Estimate the following regression model:
sales= b0 + b1 Advertising+ b2 Commission Rate+u
You currently pay your sale team a 15% commission ad have an advertising budget of $50,000. Using your regression result, estimate what your monthly sales should be .
Estimated sales=
Based on your estimate regression model, increasing your advertising budget by $100,000 should result in what change in monthly sales?
Change in expected sales=
your company has two expenses :advertising and sales commission. The sales commission is sales multiple by the commission rate. Suppose you plan on spending $200,000 on advertising. what commission rate will maximize your expected profit?
Commission rate=
Expected profit=
PLEASE HELP
Sales | Advertising | Commission Rate |
$777,337 | $53,989 | 0.05 |
$1,298,229 | $84,243 | 0.05 |
$761,788 | $60,843 | 0.05 |
$909,410 | $75,096 | 0.05 |
$834,461 | $61,502 | 0.05 |
$886,480 | $79,065 | 0.05 |
$1,445,465 | $82,290 | 0.1 |
$1,813,404 | $84,824 | 0.1 |
$1,818,759 | $68,037 | 0.1 |
$1,446,047 | $73,366 | 0.1 |
$1,394,730 | $93,487 | 0.1 |
$1,068,084 | $65,610 | 0.1 |
$906,950 | $55,302 | 0.1 |
$1,434,069 | $52,498 | 0.1 |
$1,178,701 | $58,323 | 0.1 |
$1,195,225 | $74,958 | 0.1 |
$895,850 | $68,669 | 0.1 |
$1,144,943 | $53,042 | 0.15 |
$1,514,729 | $70,702 | 0.15 |
$1,585,272 | $92,851 | 0.15 |
$1,380,604 | $53,519 | 0.15 |
$1,547,037 | $77,024 | 0.15 |
$1,802,814 | $82,663 | 0.15 |
$1,261,133 | $68,542 | 0.15 |
$1,828,865 | $82,754 | 0.15 |
$1,405,521 | $63,660 | 0.15 |
$1,816,164 | $97,539 | 0.15 |
$1,444,015 | $70,371 | 0.15 |
$1,848,502 | $96,947 | 0.17 |
$1,433,610 | $57,365 | 0.17 |
$1,341,859 | $58,291 | 0.17 |
$1,821,211 | $92,996 | 0.17 |
$1,711,908 | $58,520 | 0.17 |
$2,058,586 | $93,830 | 0.17 |
$1,397,001 | $56,583 | 0.17 |
$1,583,831 | $56,198 | 0.17 |
$1,704,615 | $74,913 | 0.15 |
$1,555,069 | $90,845 | 0.15 |
$1,513,386 | $69,049 | 0.15 |
$1,711,161 | $80,830 | 0.15 |
$1,700,938 | $63,190 | 0.15 |
$1,271,722 | $72,258 | 0.15 |
$1,629,210 | $85,112 | 0.15 |
$1,530,770 | $62,508 | 0.15 |
$1,460,396 | $72,483 | 0.15 |
$1,638,528 | $59,650 | 0.15 |
$1,425,010 | $70,040 | 0.15 |
$1,282,886 | $61,361 | 0.15 |
$1,390,688 | $69,781 | 0.15 |
$1,698,009 | $91,872 | 0.2 |
$1,653,944 | $69,344 | 0.2 |
$1,677,656 | $82,027 | 0.2 |
$2,092,675 | $99,189 | 0.2 |
$1,518,208 | $52,598 | 0.2 |
$1,835,900 | $59,268 | 0.2 |
$1,409,588 | $55,795 | 0.2 |
$2,183,968 | $83,487 | 0.2 |
$2,093,261 | $81,580 | 0.2 |
$2,005,520 | $99,873 | 0.2 |
$1,474,502 | $67,202 | 0.2 |
$1,876,594 | $51,327 | 0.2 |
$1,946,068 | $92,116 | 0.2 |
$1,467,293 | $60,744 | 0.2 |
$2,114,017 | $81,292 | 0.3 |
$2,023,127 | $62,860 | 0.3 |
$2,364,259 | $65,044 | 0.3 |
$2,627,147 | $87,646 | 0.3 |
$2,501,910 | $68,338 | 0.3 |
$2,336,444 | $61,883 | 0.3 |
$1,786,465 | $53,676 | 0.3 |
$1,952,916 | $79,009 | 0.3 |
$1,984,419 | $56,689 | 0.3 |
$2,416,277 | $87,807 | 0.3 |
$2,114,809 | $67,943 | 0.3 |
$2,196,637 | $76,349 | 0.3 |
$2,140,064 | $52,302 | 0.3 |
$2,638,558 | $79,681 | 0.3 |
$2,495,116 | $87,739 | 0.3 |
$2,187,032 | $66,488 | 0.3 |
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