Regression equation and the high-low equation

Reference no: EM1376640

High-low method, regression analysis. Anna Martinez, financial manager at the Casa Real restaurant is checking to see if there is any relationship between newspaper sales and advertising revenues at the restaurant She obtains the subsequent data for the past 10 months: She estimates the subsequent regression equation: Monthly revenues = $39,502 + ($8.723) × Advertising costs) . Use the high-low method to calculate the function, relating advertising costs and revenues. . Using

(a) the regression equation and

(b) the high-low equation, find the increase in revenues for each $1,000 spent on advertising within the relevant range?

Which method should Martinez use to predict effect of advertising costs on revenues? describe briefly

Reference no: EM1376640

Questions Cloud

What subsequent cost structure is applicable : Shoe Stores carries a basic black dress shoe for men which sell at a rate of 500 each quarter. Their current policy is to order 500 per quarter, with a fixed cost of $30/order. Annual holding cost is 20% of cost of items held. Subsequent cost stru..

Business decision making process : Make a cause and effects diagram for an unethical cashier who steal money from a consumer account.

Explain the department and its function : Explain the department and its function and what do you think are most significant direct costs incurred by this support department?

Determine optimal order size also minimum annual total cost : Annual cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine optimal order size also minimum annual total inventory cost.

Regression equation and the high-low equation : the regression equation and the high-low equation, find the increase in revenues for each $1,000 spent on advertising within the relevant range?

Illustrate what is advantages of balanced scorecard approach : Illustrate what is advantages of balanced scorecard approach also elucidate how is differ from traditional approach.

Illustrate what you believe to be proper balance : illustrate what you believe to be proper balance between an employer's legitimate right to conduct a pre-employment screening also a prospective employee's right to privacy.

Financial statements or footnotes : Give any audit steps that Rekdahl should conduct to evaluate if the company is in compliance with the bond indentures and show any reporting requirements that financial statements or footnotes should include.

Maintaining network security : The answer gives discussion on the profits and drawbacks associated with a company providing antivirus software to its workers for home use free of charge.

User Account

All Pages