Multiple Regression

For this assignment, you are required to complete Problem 64 in Chapter 11 of your textbook (p. 531). Once complete, submit your Excel document in Waypoint. Show all the work.

(S/B: 12/64) Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and let Pt be the price charged for portraits during month. The data are available in the file Chapter 11 Problem 64 (P11_64). Use regression to fit the following model to these data:

Yt = a + b1Yt1 + b2Pt + et

This equation indicates that last months sales and the current months price are explanatory variables. The last term, et, is an error term.

The students are encouraged to discuss the solution to this problem with their instructor.

For your assignment, complete the following:

• If the price of a portrait during Month 21 is $10, what would you predict for sales in Month 21?

In your Excel spreadsheet,

• Utilize the regression model.
• Utilize Excel support tools.
• Predict sales as described.

Chapter 11 Problem 64 (P11_64) is attached as well as grading rubric. please follow instructions, ensure calculations are correct and pay attention to the grading rubric.