The business problem facing a consumer products company is to measure the effectiveness of different types of advertising media in the promotion of its products. Specifically, the company is interested in the effectiveness of radio advertising and newspaper advertising (including the cost of discount coupons). During a one month test period, data were collected from a sample of 22 cities with approximately equal populations. Each city is allocated a specific expenditure level for radio advertising and for newspaper advertising. The sales of the product (in thousands of dollars) and also the levels of media expenditure (in thousands of dollars) during the test month are recorded, with the following results shown below and stored in Advertise:

a. State the multiple regression equation.
b. Interpret the meaning of the slopes, b1 and b2, in this problem.
c. Interpret the meaning of the regression coefficient, b0.
d. Which type of advertising is more effective? Explain.

Transcribed Image Text:

rgk 550055555500550055 2233332244 223333 eo 0 0 50055 5 445555 5500 5 2 2 3 3 3 3 4 4 Rdh s a 395501172287 e s 7172173788 324 123 u-918 6 9 9 9 1 8 9 6 5 0 9 3 3 4 4 5 7 87 18901 2345678911234567