sales and advertising problem


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sales and advertising problem 1 answer below » The Sales and Advertising Data (2009)
Kramer Smith Case
Kramer Smith owns a dry-cleaning service and is thinking about changing his advertising expenditures for the year. He hires you as a consultant to determine the relationship between sales, consumer incomes, and advertising by means of multiple regression analysis.
Smith has gathered the sales, income, and advertising data for the last year, as shown in Table 1.
Click
http://threadcontent.next.ecollege.com/pub/content/d04b33f2-e772-4e2e-8a74-0ab9144f59e0/The_Sales_and_Advertising_Data.dochere to view Table 1. View complete question » The Sales and Advertising Data (2009)
Kramer Smith Case
Kramer Smith owns a dry-cleaning service and is thinking about changing his advertising expenditures for the year. He hires you as a consultant to determine the relationship between sales, consumer incomes, and advertising by means of multiple regression analysis.
Smith has gathered the sales, income, and advertising data for the last year, as shown in Table 1.
Click
http://threadcontent.next.ecollege.com/pub/content/d04b33f2-e772-4e2e-8a74-0ab9144f59e0/The_Sales_and_Advertising_Data.dochere to view Table 1. Document Preview: The Sales and Advertising Data (2009)
Kramer Smith Case
Kramer Smith owns a dry-cleaning service and is thinking about changing his advertising expenditures for the year. He hires you as a consultant to determine the relationship between sales, consumer incomes, and advertising by means of multiple regression analysis.
Smith has gathered the sales, income, and advertising data for the last year, as shown in Table 1.
Click
http://threadcontent.next.ecollege.com/pub/content/d04b33f2-e772-4e2e-8a74-0ab9144f59e0/The_Sales_and_Advertising_Data.dochere to view Table 1.
Create a report answering the following questions:
Construct a scatter graph showing the advertising and sales relationship over the last twelve months.
Using multiple regression, conduct an analysis of the firm’s sales revenue, consumer incomes, and advertising.
Describe how you would explain your results to Smith and what recommendations you would suggest.
Summarize your recommendations or advice to Smith concerning the relationship between sales, income, and advertising.
Create your report in a 2- to 3-page Microsoft Word document.
Table 1
Month
Advertising ($)
Sales
($)
Consumer Income ($)
January
10,000
43,000
41,000
February
9,000
40,500
43,000
March
11,000
41,000
45,000
April
12,000
45,900
47,000
May
11,000
47,000
49,000
June
12,000
51,000
51,000
July
13,000
54,000
53,000
August
13,000
57,000
55,000
September
14,000
56,000
57,000
October
15,000
60,000
58,000
November
15,800
61,000
59,000
December
16,700
63,000
61,000
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MBA5004_Managerial Economics
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