Do problem XXXXXXXXXXSubmit an Excel file with your model output and responses.36. The owner of a restaurant has recorded sales data for the past 19 years. He has also recorded data on potentially...

Do problem 11.36. Submit an Excel file with your model output and responses.

36. The owner of a restaurant has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data appear in the file
P10_23.xlsx


Download P10_23.xlsx

.

• Estimate a regression equation for sales as a function of population, advertising in the current year, and advertising in the previous year. Can you expect predictions of sales in future years to be very accurate if they are based on this regression equation? Explain.


• The company would like to predict sales in the next year (year 20). It doesn’t know what the population will be in year 20, so it assumes no change from year 19. Its planned advertising level for year 20 is $30,000. Find a prediction and a 95% prediction interval for sales in year 20.


• PLEASE SUBMIT AN EXCEL FILE

Data YearSales Christopher J. Zappe, Ph.D.: Sales in thousands of dollars during the current year. Population Christopher J. Zappe, Ph.D.: Population within ten miles of the restaurant. AdvertisingPrevious Advertising 1$15,713102,558$20,000$30,000 2$12,937101,792$15,000$20,000 3$12,872104,347$25,000$15,000 4$16,227106,180$30,000$25,000 5$15,388106,562$15,000$30,000 6$13,180105,209$25,000$15,000 7$17,199109,185$35,000$25,000 8$20,674109,976$40,000$35,000 9$20,350110,659$20,000$40,000 10$14,444111,844$25,000$20,000 11$17,530111,576$35,000$25,000 12$16,711113,784$5,000$35,000 13$9,715112,482$12,000$5,000 14$12,248116,487$16,000$12,000 15$13,856117,316$21,000$16,000 16$15,285117,830$22,000$21,000 17$15,620118,148$24,000$22,000 18$17,158118,481$26,000$24,000 19$17,800121,069$28,000$26,000 This is fictitious data.