Question: A local night entertainment establishment in a small college town is trying to decide whether they should increase their weekly advertising expenditures on the campus radio station. The last six weeks of data on monthly revenue (y) and radio advertising expenditures (x) are given in the accompanying table. What would their predicted revenues be next week if they spent $500 on radio commercials. Give a 90% confidence interval for next weeks revenues. Suppose that they spend $500 per week for the next 10 weeks. Give a 90% confidence interval for the average revenue over the next 10 weeks.
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