The following model was fitted to a companys yearly sales ($000) on the advertising expenditure ($000), number

Question:

The following model was fitted to a company’s yearly sales ($000) on the advertising expenditure ($000), number of sales people, distance traveled by the sales people (000km), and the previous yearly sales ($000) for the past 20 years:

where
ŷ = sales
x₁= advertising expenditure
x₂ = number of sales people
x₃ = distance traveled

The p-values for each independent variables and the lagged variable determined from the model are 0.0357, 0.0254, 07239 and 0.0038. Whereas, the R-square and the F-test value for the model is 0.9374 and 198.56 respectively.

Based on the results, write a brief report for the company.

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