The file P11_46.xlsx contains data on a motel chain’s revenue and advertising. Note that column C is simply column B “pushed down” a row.
a. If the goal is to get the best-fitting regression equation for Revenue, which of the Advertising variables should be used? Or is it better to use both?
b. Using the best-fitting equation from part a, make predictions for the motel chain’s revenues during the next four quarters. Assume that advertising during each of the next four quarters is $50,000.
c. Does autocorrelation of the residuals from the best-fitting equation appear to be a problem?