A household appliance manufacturer wants to analyze the relationship between total sales and the company's three primary

Question:

A household appliance manufacturer wants to analyze the relationship between total sales and the company's three primary means of advertising (television, magazines, and radio). All values were in millions of dollars. They found the regression equation
Sales = 250 + 6.75 TV + 3.5 Radio + 2.3 Magazines.
One of the interpretations below is correct. Which is it? Explain what's wrong with the others.
a) If they did no advertising, their income would be $250 million.
b) Every million dollars spent on radio makes sales increase $3.5 million, all other things being equal.
c) Every million dollars spent on magazines increases TV spending $2.3 million.
d) Sales increase on average about $6.75 million for each million spent on TV, after allowing for the effects of the other kinds of advertising.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Stats Data And Models

ISBN: 662

4th Edition

Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock

Question Posted: