Activity 1 1. A manager claims that increases in advertising expenditure will surely raise the firm's profits, citing his sense that people find the firm's ads entertaining. Sketch how you might refute this claim using: Advertisements are in general targeted for tire I and tire 2 class of the people where a certain group of people are missed targeting. Hence, I believe the concept of advertising measures to promote the profit will not yield a positive outcome. Also, advertisements have an impact on profitability. Data Lucid Motors who claim to be the luxury Electric vehicle has not still reached the market and made it as a public company. In the 2020 Q2 they had reported a fall in earnings by 4.5% and they had spent close to 500 million dollars on promoting a developmental product impacting the funds of the investment. Why might the refutation using data be more convincing? I believe it's tough in this situation to consider a theoretical argument when you possess a valuable convincing data like this. For Instance, the earnings of the company in the past 10 quarters determine their progress. Data in this case has been used as an proven result to evaluate and the impact of the investment in advertisement do possess negative imnat'ts on 3 organization