Question
Your marketing department estimates weekly sales of ice cream at your grocery stores using average temperature and advertising expenditures as explanatory variables. The estimated equation
Your marketing department estimates weekly sales of ice cream at your grocery stores using average temperature and advertising expenditures as explanatory variables. The estimated equation is:
S = 100 + 20T + 0.5A
where S is weekly sales in thousands of dollars, T is average weekly temperature in degrees Fahrenheit, and A is weekly advertising expenditures in thousands of dollars. Next week is expected to be hot, with temperatures averaging 100OF. Marketing has already budgeted $200 thousand for next week's ads. What is your prediction for next week's ice cream sales?
Select one:
a.
$2,200 thousand
b.
$2,000 thousand
c.
$120.5 thousand
d.
$220 thousand
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