All data can be found in MKT6309_Assignment_3_501.docx on course hero

2. The data in the file called "Assign.xls" are from a field experiment on a frequently purchasedbrand. We have available 76 weeks of data on a control panel of families and a matched experimental panel from the same town. Both panels are exposed to the same base level of advertising for the first 52 weeks. For the last 24 weeks, the control panel is continued to be exposed to the base level while the experimental panel is exposed to twice the level of advertising as the control panel. The dependent variable is weekly sales of the brand undergoing the experiment. This is obtained by aggregating over all families who purchase the brand that week.The independent variables are own price and the chief competitive brand's price. A variableDUM was created which takes the value 0 for the first 52 weeks and 1 for the next 24 weeks. The variable DUM can be considered a PRE/POST variable, i.e., a variable that measures change in the last 24 weeks relative to the first 52 weeks.

The variables in the file ASSIGN, in order from column 1 through column 8, are:

Week, SalesExp (unit sales in experimental group), SalesCntl (unit sales in control group),BPriceExp (brand's own price in experimental group), BpriceCntl (brand's own price in control group), CPriceExp (competitive brand's price in experimental group), CPriceCntl (competitive brand's price in control group), and DUM (defined above).

To verify the accuracy of the data you have, you may compare the means of each variable in the data with the numbers below:

Part 2 (10 points) 2a. Run a regression of SalesExp against BPriceExp, CPriceExp and DUM. Provide the estimated regression equation. Answer: Estimated Regression equation: SalesExp(Y) = 15794.44 - 14541.01 BPriceExp + 7587.98 CPriceExp + 45.48DUM (10 points) 2b. What does DUM measure? What can you conclude about the advertising experiment based on these results? Answer: Part 3 (10 points) 3a. Run a regression of SalesCatl against BPriceCutl, CPriceCntl and DUM. Provide the estimated regression equation. Answer: Estimated Regression equation: SalesCntl(Y) = 19050.26 - 15475.90 BPriceCntl + 5989.45 CPriceCntl - 1170.53 DUM (5 points) 3b. What do you make of the value of DUM in this regression? What do you think is going on? Can you put the results from parts 2 and 3 together to reach a conclusion about the effectiveness of the increased advertising in the experimental panel