A Local Newspaper That Appears Six Days Per Week Wanted $=2000+0.6 t-150 D_{1}-40 D_{2}$

question 76

Essay

A local newspaper that appears six days per week wanted to forecast two-day revenues from its business services classified ads section. The revenues (in $1000s) were recorded for the past 52 weeks. From these data, the following regression equation was computed: $=2000+0.6 t-150 D_{1}-40 D_{2}$ , t = 1, 2, 3,…156,
where: $D _ { 1 }$ = 1, if Monday or Tuesday
= 0, otherwise. $D _ { 2 }$ = 1, if Wednesday or Thursday
= 0, otherwise.
Forecast the two-day revenues for the next week.

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on company matters at shareholder meetings.

ASPE

Accounting Standards for Private Enterprises, a set of accounting principles for private companies in Canada.

Significant Influence

Control exerted by an investor over a subsidiary or associate, typically through ownership of a substantial portion of voting stock, allowing the investor to affect financial and operating policies.

Equity Method

An accounting technique used by a company to record investments in other companies where it has significant influence but does not have full control.