A Local Newspaper That Appears Six Days Per Week Wanted

Essay

A local newspaper that appears six days per week wanted to forecast two-day revenues from its business services classified ads section. The revenues (in $1000s) were recorded for the past 52 weeks. From these data, the following regression equation was computed:
ŷt = 2000 + 0.6t - 150D1 - 40D2 , t = 1, 2, 3,…156,
where:
D1 = 1, if Monday or Tuesday
= 0, otherwise.
D2 = 1, if Wednesday or Thursday
= 0, otherwise.
Forecast the two-day revenues for the next week.