value 1.00 points Reported below are the amounts spent on advertising (S milions
ID: 3312910 • Letter: V
Question
value 1.00 points Reported below are the amounts spent on advertising (S milions) by a large firm from 2004 to 2014 2004 2005 2006 2007 2008 2009 88.8 94.6 102.4 109.5 118.4 125.3 2010 2011 2012 2013 2014 132.6 141.5 150.3 157.3 162.5 a. Determine the logarithmic trend equation. (Round your answers to 4 decimal places.) 0.0271 b. Estimate the advertising expenses for 2017. (Round your answer to 2 decimal places The antilog of y (2017)-$ By what percent per yoar did advertising expense increase during the period? (Round your answer to 2 decimal places.) 6.41 percent References eBook & Resources Worksheet Type here to search 010eExplanation / Answer
The regression equation is
ln(amount) = - 120.002 + 0.0621 year
Predictor Coef SE Coef T P
Constant -120.002 3.505 -34.24 0.000
year 0.0621 0.0017 35.61 0.000
S = 0.0182981 R-Sq = 99.3% R-Sq(adj) = 99.2%
a) Ans: The regression equation is
ln(amount) = - 120.002 + 0.0621 year
b) Ans: The advertising expenses for 2017 is
exp( - 120.002 + 0.0621 *2017)=191.27.
c)
The advertising expenses for 2017 is
exp( - 120.002 + 0.0621 *2017)=191.27.
The advertising expenses for 2017 is
exp( - 120.002 + 0.0621 *201)=203.5273
Therefore, increase in the advertising during one year is 203.5273- 191.27.=12.2546.
Now, the percentage of advertising expenses increase in one year
=12.2546*100/ (191.27)=6.41%
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