Question

A sales manager used linear regression to find the positive linear relationship between advertising expenditures and sales. the equation was calculated from the following data from 7 randomly selected advertising campaigns:

Advertising Expenditures - $8,000 / $22,000 / $15,000 / $39,000 / $32,000 / $12,000 / $45,000

Sales - $95,000 / $190,000 / $125,000 / $ 225,000 / $285,000 / $150,000 / $350,000

If the sales manager used the regression equation to predict the amount of sales that he can expect for advertising expenditures of $35,000, and then used the equation to predict the amount of sales he can expect for advertising expenditures of $65,000, Which prediction would probably be more reliable and why? Must use calculator or Spss and work must show your evidence. to why?

Answer #1

5. A sales manager used linear regression to find the positive
linear relationship between advertising expenditures and sales. the
equation was calculated from the following data from 7 randomly
selected advertising campaigns:
Advertising Expenditures - $8,000 / $22,000 / $15,000 / $39,000
/ $32,000 / $12,000 / $45,000
Sales - $95,000 / $190,000 / $125,000 / $ 225,000 / $285,000 /
$150,000 / $350,000
If the sales manager used regression equation to predict the
amount of sales that he can...

A sales manager used linear regression to find the positive
linear relationship between advertising expenditures and sales. the
equation was calculated from the following data from 7 randomly
selected advertising campaigns:
Advertising Expenditures - $8,000 / $22,000 / $15,000 / $39,000
/ $32,000 / $12,000 / $45,000
Sales - $95,000 / $190,000 / $125,000 / $ 225,000 / $285,000 /
$150,000 / $350,000
If the sales manager used regression equation to predict the
amount of sales that he can expect...

Suppose that a company wishes to predict sales volume based on
the amount of advertising expenditures. The sales manager thinks
that sales volume and advertising expenditures are modeled
according to the following linear equation. Both sales volume and
advertising expenditures are in thousands of dollars.
Estimated Sales Volume=46.22+0.45(Advertising Expenditures)
If the company has a target sales volume of $275,000, how much
should the sales manager allocate for advertising in the budget?
Round your answer to the nearest dollar.

The following estimated regression equation relating sales to
inventory investment and advertising expenditures was given.
ŷ = 25 + 11x1 +
9x2
The data used to develop the model came from a survey of 10
stores; for those data, SSyy (Total Sum of Squares) = 16,000 and
SSR (Regression Sum of Squares) = 11,360.
(a)
For the estimated regression equation given, compute
R2.(Round your answer to two decimal
places.)
R2 = ____
(b)
Compute the adjusted r-square,
Ra2.
(Round your...

The following estimated regression equation relating sales to
inventory investment and advertising expenditures was given.
ŷ = 24 + 12x1 +
7x2
The data used to develop the model came from a survey of 10
stores; for those data, SSyy (Total Sum of Squares) = 17,000 and
SSR (Regression Sum of Squares) = 12,070.
(a)For the estimated regression equation given, compute
R2.(Round your answer to two decimal
places.)
R2 =
(b) Compute the adjusted r-square,
Ra2.(Round
your answer to two...

The following estimated regression equation relating sales to
inventory investment and advertising expenditures was given.
ŷ = 25 + 11x1 + 9x2
b) Compute Ra2. (Round your answer to two
decimal places.)
(c)
Does the model appear to explain a large amount of variability
in the data? Explain. (For purposes of this exercise, consider an
amount large if it is at least 55%. Round your answer to the
nearest integer.)
The adjusted coefficient of determination shows that
% of the...

QUESTION 19
Polynomial regression was used
to predict sales (Y) using advertising expenditure (X) and its
square (X2) as independent variables. The following
information is available:
Predictor
Coefficients
Standard Error
Constant
328.42
29.42
X
10.970
1.832
X2
-.12507
.02586
ANOVA
Source
DF
SS
F
Regression
42.56
Residual
Total
11
14,107.7
Testing, at the .05 level of significance, if the quadratic term is
useful for the prediction of sales, the alternative hypothesis is:
a.
Ha: b1 ¹ 0
b.
Ha: b2 =...

Does a linear association exist between advertising expenditure
and company sales? Perform the appropriate hypothesis test using a
5% significance level. Compute the test statistic value.
Parameter Estimate Standard Error
Intercept 104.062 14.845
Slope 50.730 9.259
t=104.062/50.730, df=8-2=6
t=50.730/9.259, df=8-2=6
t=104.062/14.845, df=8-2=6
t=50.730/9.259, df=8-1=5
Does a linear association exist between advertising expenditure
and company sales? Perform the appropriate hypothesis test using a
5% significance level. State the null and alternative
hypothesis.
H0: beta_1=0 vs. Ha: beta_1 not equal to 0...

A sales manager for an advertising agency believes there is a
relationship between the number of contacts that a salesperson
makes and the amount of sales dollars earned.
A regression analysis shows the following results:
Coefficients
Standard Error
t Stat
p value
Intercept
−12.201
6.560
−1.860
0.100
Number of contacts
2.195
0.176
12.505
0.000
ANOVA
df
SS
MS
F
Significance F
Regression
1.00
13555.42
13555.42
156.38
0.00
Residual
8.00
693.48
86.68
Total
9.00
14248.90
Additional information needed to perform the...

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INNOVATION
Deep Change: How Operational Innovation Can Transform Your
Company
by
Michael Hammer
From the April 2004 Issue
Save
Share
8.95
In 1991, Progressive Insurance, an automobile insurer based in
Mayfield Village, Ohio, had approximately $1.3 billion in sales. By
2002, that figure had grown to $9.5 billion. What fashionable
strategies did Progressive employ to achieve sevenfold growth in
just over a decade? Was it positioned in a high-growth industry?
Hardly. Auto insurance is a mature, 100-year-old industry...

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