The advertising manager of Leonin Company wants to know whether the companys advertising pro- Interpretation of Regression

The advertising manager of Leoniné Company wants to know whether the company’s advertising pro- Interpretation of Regression gram is successful. The manager used a spreadsheet to estimate the relationship between number of Rests advertisements (the independent variable) and sales dollars. Monthly data for the past two years were (LO 3)

entered into the computer. The regression results indicated the following equation:

SUMMARY OUTPUT Dependent variable = Sales dollars Regression Statistics R-square 0.5821 Standard error 12,162.4321 Observations 24 Independent Variable Coefficients Intercept _ 845.153.3385 Advertisements —503.496 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 and sales