High-low method; regression analysis. (CIMA, adapted) Anna Schaub, the financial manager at the Mangiamo restaurant,
High-low method; regression analysis. (CIMA, adapted) Anna Schaub, the
financial manager at the Mangiamo restaurant, is checking to see if there is any relationship between newspaper advertising and sales revenues at the restaurant. She obtains the following data for the past 10 months:
| Month | Revenues | Advertising Costs |
| March | $51,000 | $1,500 |
| April | 72,000 | 3,500 |
| May | 56,000 | 1,000 |
| June | 64,000 | 4,000 |
| July | 56,000 | 500 |
| August | 64,000 | 1,500 |
| September | 43,000 | 1,000 |
| October | 83,000 | 4,500 |
| November | 56,000 | 2,000 |
| December | 61,000 | 2,000 |
She estimates the following regression equation:
Monthly revenues = $46,443 + ($6.584 × Advertising costs)
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