1. The business problem that consumer product companies measure is the various types of advertising media in the promotion of their products. In particular, the company is interested in advertising in favor of radio and newspaper advertising (including discount coupon fees). One month testing period, data were collected from a sample of 22 cities with roughly the same population. Each city is allocated a specific expenditure level for radio advertising and newspaper advertising. Product sales (in $ '000) as well as media expenditure rates (in $' 000) during the test month, with results shown in

the following table:

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