High-low method; regression analysis. (CIMA, adapted) Anna Martinez, the financial manager at the Casa Real 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
|
$50,000
|
$2,000
|
|
April
|
70,000
|
3,000
|
|
May
|
55,000
|
1,500
|
|
June
|
65,000
|
3,500
|
|
July
|
55,000
|
1,000
|
|
August
|
65,000
|
2,000
|
|
September
|
45,000
|
1,500
|
|
October
|
80,000
|
4,000
|
|
November
|
55,000
|
2,500
|