Sally wanted to build a multiple regression model based on advertising expenditures and A coffee business price index. Based on the selection of all normal values she obtained the following:

1. Multiple R = 0.738 2. R square=0.546

By using lagged values she came up with the following:

3.Multiple R=0.755 4. R square=0.570

Explain the differences in using these different methods. How could the Coffee business further optimize this model.

Tourism is one consideration for The coffee future. A survey of 1,233 visitors to India last year revealed that 110 visited a small cafe during thei visit. Sally clains that 10%of tourists will include a visit to a cafe. Use a 0.05significance level to her claim. Would it be wise for her to use that claim in trying to convince mangement to increase ther advertising spending to travel agents? Explain.

Finally, what additional strategy (or varied) would she reccommend to the key decision maker to solve the challenge. Prepare a 350 word memo to the key decision maker advocating this reccommendation.