Hours New Subscriptions 1224 5357 1458 6177 1006 4795 1395 5692 1131 4312 921 3421 704 2624 1154 4087 1168 4934 803 2546 830 3591 981 4271 1435 5836

To ensure that as many trial subscriptions as possible are converted to regular subscriptions, the Herald marketing department works closely with the distribution department to accomplish a smooth initial delivery process for the trial subscription customers. To assist in this effort, the marketing department needs to accurately forecast the number of new regular subscriptions for the coming months.A team consisting managers from the marketing and distribution departments was convened to develop a better method of forecasting new subscriptions. Previously, after examining new subscription data for the prior three months, a group of three managers would develop a subjective forecast of the number of new subscriptions. Lauren Hall who is recently hired by the company to provide expertise in quantitative methods, suggested that the department look for factors that might help predicting new subscriptions.Members of the team found that the forecasts in the past year had been particularly inaccurate because in some months, much more time was spent on telemarketing than in other months. In particular, in the past month, only 1,055 hours were completed because callers were busy during the first week of the month attending training sessions on the personal but formal greeting style and new standard presentation guide. Lauren collected data SH12 for the number for new subscriptions and hours spent on telemarketing for each month for the past two years. ---- Analyze the data and develop a regression model to predict the number of new subscriptions for a month, based on the number of hours spent on telemarketing for new subscriptions.-- If you expect to spend 1,200 hours on telemarketing per month, estimate the mean number of new subscriptions for the month. Indicate the assumptions on which this prediction is based. Do you think these assumptions are valid? Explain.4.