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As the marketing manager of XY Gaming Online (Pty) Ltd, you havebeen asked to determine the relationship between the amount spent on marketing in relation

As the marketing manager of XY Gaming Online (Pty) Ltd, you havebeen asked to determine the relationship between the amount spent on marketing in relation to the expected number of new customers visiting the company's website in order to purchase an online gaming program by using linear regression analysis ( y=a+bx.)

Market research has provided the following additional information:

  • a = 130
  • b = 0.44
  • y = the number of customers visiting the website with a view to purchasing the game.
  • X = the amount spent on marketing the game

Using the linear regression analysis formula y = a + bx, your are required to calculate the following:-

1. Calculate the amount of money that would have to be spent on marketing in order to attract one new client to the website.(1)

2. Calculate the amount that would have to be spent on marketing in order to attract 190 customers.(1)

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