Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Estimate a regression line using sales as dependent variable and TV advertising spending and radio advertising spending as independent variables. Clearly interpret the estimated coefficients
- Estimate a regression line using sales as dependent variable and TV advertising spending and radio advertising spending as independent variables.
- Clearly interpret the estimated coefficients of your regression line and discuss the effect of each independent variable on sales in 4 lines.
- Use expected spending on TV advertising and on radio advertising in 2017 and 2018 to predict sales in these two years and interpret the results.
Compare predicted sales in 2017 with sales in 2018. Please explain whether this reallocation of advertising spending will have positive effect on sales and why?
Year | Sales($) | TV AD($) | Radio AD($) | Sales($) = Sales | |
2007 | 4,000,000 | 6,000 | 4,000 | TV AD($) = TV Advertising Spending | |
2008 | 4,400,000 | 10,000 | 4,000 | Radio AD($)= Radio Advertising Spending | |
2009 | 4,600,000 | 12,000 | 5,000 | ||
2010 | 4,800,000 | 14,000 | 7,000 | ||
2011 | 5,200,000 | 16,000 | 9,000 | ||
2012 | 5,800,000 | 18,000 | 12,000 | ||
2013 | 6,000,000 | 22,000 | 14,000 | ||
2014 | 6,800,000 | 24,000 | 20,000 | ||
2015 | 7,400,000 | 26,000 | 21,000 | ||
2016 | 8,000,000 | 32,000 | 24,000 | ||
2017 | 42,000 | 20,000 | |||
2018 | 30,000 | 31,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started