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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 306
FORECASTING SALES AT ALCORN'S BOUTIQUE
Jane Alcorn had sold items on eBay for several years but felt it was time to open a retail store once her son Benton graduated from college. After thinking about the options and competition, she decided to open a shop specializing in women's clothing. Sales were slow for her first few months and she began to wonder how much she should be spending on advertising. So, she decided to do an experiment and keep track of the monthly amount spent on advertising and the monthly sales. The actual data is shown in the following graph.
Benton used statistics to help find the equation that was a best fit for the data. The equation is shown as the straight line in the graph. He told his mother it might not help much since it did not take into account factors such as seasonality or competition. And of course, Alcorn still had to decide where to advertise and exactly what the advertisements should look like. But she thought the equation might give her some idea of how much she should spend on advertising each month. The equation for the best-fit line for actual sales data found by Benton is given next. It is the equation of the straight line in the graph.
Estimate sales for advertising of $800 and $2000.
Jane Alcorn had sold items on eBay for several years but felt it was time to open a retail store once her son Benton graduated from college. After thinking about the options and competition, she decided to open a shop specializing in women's clothing. Sales were slow for her first few months and she began to wonder how much she should be spending on advertising. So, she decided to do an experiment and keep track of the monthly amount spent on advertising and the monthly sales. The actual data is shown in the following graph.
Benton used statistics to help find the equation that was a best fit for the data. The equation is shown as the straight line in the graph. He told his mother it might not help much since it did not take into account factors such as seasonality or competition. And of course, Alcorn still had to decide where to advertise and exactly what the advertisements should look like. But she thought the equation might give her some idea of how much she should spend on advertising each month. The equation for the best-fit line for actual sales data found by Benton is given next. It is the equation of the straight line in the graph.
Estimate sales for advertising of $800 and $2000.
Explanation
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The regression equation is 
where is in...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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