Elliott Is the Vice-President of Marketing for NYP Corporation

Essay

Elliott is the vice-president of marketing for NYP Corporation. He has called upon you, a member of the accounting staff, to help him forecast future sales. A regression analysis, with sales as the dependent variable and number of credit clients as the independent variable, yielded the following results:
Variable Coefficient t-statistic p-value
Intercept 6911.45 3.45 0.01
Number of clients 1157.88 3.75 0.01
Adjusted R-square = 0.85
a)Write out the revenue function for this regression.
b)Identify two uncertainties associated with using the number of clients to predict sales.