Question

What is the sample regression equation relating to sales advertising?

Answer 1

Sample Regression equation relating to sales advertising is shown below:

$ Sales = A + (BX Print Advertising Expenditure) + (CX Online Advertising Expenditure)

In the equation shown above, If we know the budget of advertising expenditure then we can forecast what can be the sales revenue.

From above, we can also know which type of advertising media is more effective i.e. expense on which type of advertising will give the more output depending on weightage of the coefficient of the different type of advertising.

So, in the above equation, if B>C, then same expenditure on print advertising will give more revenue.