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Measuring the Media using Statistics

Table:
Sales RadioTV Newspaper
973 0 40
1119 0 40
875 25 25
625 25 25
910 30 30
971 30 30
931 35 35
1177 35 35
882 40 25
982 40 25
1628 45 45
1577 45 45
1044 50 0
914 50 0
1329 55 25
1330 55 25
1405 60 30
1436 60 30
1521 65 35
1741 65 35
1866 70 40
1717 70 40

A large consumer product company wants to measure the effectiveness of different types of advertising media in the promotion of its products. Specifically, two types of advertising media are to be considered: radio/TV advertising and newspaper advertising (including the cost of discount coupons). The sales of product (in thousands of dollars) and also the levels of media expenditure (in thousands of dollars) during the test month are recorded in ADRADTV.XLS (from the CD). Let X1 and X2 be the dollar amount of radio/TV ads and newspaper ads, respectively. Using EXCEL or PHStat2, answer the following:

What is SSR(X1 and X2)?
a) 2028032.69
b) 632259.45
c) 1395773.24

What is the F-value for X1 when used the partial F test criterion for determining the contribution of X1?
a) 55.28
b) 32.12
c) 43.81

What is the F-value for X2 when used the partial F test criterion for determining the contribution of X2?
a) 55.28
b) 32.12
c) 43.81

Determine which explanatory variable has a significant relationship with sales (Y) using the 5% significance level.
a) Radio/TV only
b) Newspaper only
c) Both Radio/TV and Newspaper.

Solution Preview

See the attachment.

I've included my ANOVA output in Excel (view attachment). Based on this output,

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Solution Summary

The solution assists with measuring the media using statistics.

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