Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data...


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Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the<br>effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the<br>unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation:<br>Sales, = 1011 + 004Advertising Costs-1-0.68Unemployment Rater<br>a. Hiroshi had budgeted $540 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 if the unemployment<br>rate in May 2009 was 8.1%. (Enter your answer in dollars not in thousands.)<br>Sales<br>b. What will be the forecast if he raises his advertisement budget to $560? (Enter your answer in dollars not in thousands.)<br>Šales<br>c. Reevaluate the above forecasts if the unemployment rate was 84% in May 2009. (Enter your answers in dollars not in thousands.)<br>Advertising<br>Sales,<br>540<br>%24<br>560<br>%24<br>

Extracted text: Hiroshi Sato, an owner of a sushi restaurant in San Francisco, has been following an aggressive marketing campaign to thwart the effect of rising unemployment rates on business. He used monthly data on sales ($1,000s), advertising costs ($), and the unemployment rate (%) from January 2008 to May 2009 to estimate the following sample regression equation: Sales, = 1011 + 004Advertising Costs-1-0.68Unemployment Rater a. Hiroshi had budgeted $540 toward advertising costs in May 2009, Make a forecast for Sales for June 2009 if the unemployment rate in May 2009 was 8.1%. (Enter your answer in dollars not in thousands.) Sales b. What will be the forecast if he raises his advertisement budget to $560? (Enter your answer in dollars not in thousands.) Šales c. Reevaluate the above forecasts if the unemployment rate was 84% in May 2009. (Enter your answers in dollars not in thousands.) Advertising Sales, 540 %24 560 %24

Jun 07, 2022
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