Interpreting Regression Results: The advertising manager of Ninja Sales Company wants to know if the company's advertising program is successful. The manager used a pocket calculator to estimate the relation between advertising expenditures (the independent variable) and sales dollars. Monthly data for the past two years were entered into the calculator. The regression results indicated the following equation:

These results might imply that the advertising was reducing sales. The manager was about to conclude that statistical methods were so much nonsense when you walked into the room.

Required: Help the manager. What might cause the negative relationship between advertising expenditures and sales?

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Sales dollars = $845.000 - $520 x Advertising Correlation coefficient = -.902