At the end of the first fiscal quarter, which ended on the last day of last mont
ID: 3023262 • Letter: A
Question
At the end of the first fiscal quarter, which ended on the last day of last month, the research team at Finer Diner computed the following model as a means of predicting monthly gross revenues: Gross revenues (Y) = 618.4 + 282.68(Advertising Expenditures) + 95.43(Number of Nights with Live Entertainment) Y = Gross revenues (monthly) X1 = Advertising Expenditures (monthly) X2 = Number of Nights with a Band Present (monthly) Calculated p-values for Advertising Expenditures and Number of Nights with Live Entertainment are 0.00005 and 0.35 respectively. Currently, the restaurant spends $500 per month on advertising and has live entertainment fifteen nights per month. Based on the current model and p-values: Predict gross revenues if the restaurant raised monthly advertising expenditures by 15%, 25%, and 50%. Predict gross revenues if the restaurant provided live entertainment 12 nights per month, 20 nights per month, and 24 nights per month. Create a 6- to 8-slide Microsoft® PowerPoint® or Prezi presentation in which you: • Identify goals of 15% increase in gross revenues for the next fiscal month, a 25% increase in monthly gross revenues for the current quarter, and a 50% increase in monthly gross revenues at the end of this fiscal year. • Predict changes in advertising expenditures and how many nights live entertainment is offered that will lead to meeting the goals. • Illustrate potential strategies to accomplish your proposed increases.
Explanation / Answer
Follow the given steps to find the gross revenue, with 15% increase in monthly advertising expenditure and live entertainment 12 nights per month.
1. Substitute X1 with 0.15 and X2 with 12 in the given equation.
2. The resultant value is 1805.962.
Similarly, obtain the gross revenue for other given advertising expenditure and live entertainment per night.
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