Question

We have a marketing manager who believes that for 1 every dollar put into advertising, 2 dollars are returned. This manager is very confident about the hypothesis. You observe the advert spending budget and sales return:

B = [10, 20, 40, 80, 160, 320]

S = [0, 10, 90, 150, 300, 600]

Please use either R, Python, or hand written.

a) Assuming a straightline model, use a test statistic to support or reject the hypothesis that the return from the budget is 2. (6points)

Answer 1