Purchase Solution

Coefficient and relationships for Smith's Appliances advertising budget

Not what you're looking for?

Ask Custom Question

Smith's Appliances is evaluating its advertising budget. The owner is trying to decide if the budget needs to be altered or not. The question: Is there a positive return on the investment that is being made in advertising? What is the relationship between sales and the amount spent on advertising? The owner collected data for the past year by month. The data is in millions of dollars.
Month Advertising Expense Sales Revenue
January 2 4
February 3 5
March 3 6
April 5 8
May 6 8
June 4 7
July 5 7
August 6 8
September 7 9
October 8 10
November 10 13
December 9 11

Is there a relationship between the two variables? What is the coefficient of correlation for this data?

A. No, 0.457

B. Yes, 0.892

C. Yes, 0.980

D. Yes, 0.961

Purchase this Solution
Solution Summary

The coefficient and relationships for Smith's appliances advertising is examined.

Solution provided by:
Sandhya Sharma, MSc
Education
  • BSc, Meerut University
  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
Recent Feedback
  • "Perfect, thank you so much!!! I will definitely request you in the future! You are amazing!"
  • "Thank you. "
  • "Thank you so much I have two more that I need your help with if your available."
  • "Thank you, I was wondering why you rejected me the first time."
  • "Thanks again."
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

View More Free Quizzes
Related BrainMass Solutions

  • Risk Management in Projects

    Alana just informed you that the company's vendor relationships have enabled them to make arrangements for Terrence Smith, a world-renowned golf champion, to be the company's spokesperson.

  • Correlation Types and Statistical Analysis

    - There is a significant relationship between advertising budget and sales volume. 4) What relationships (correlations), were identified in the attached case study?

  • Examining Regression Analysis

    Solution Problem description A CEO of a large pharmaceutical company would like to determine if he should be placing more money allotted in the budget next year for television advertising of a new drug marketed for controlling asthma.

  • New Product Development and Marketing - Wash n' Dry

    Indicate which method(s) you will use and how much you will spend. (4). What are the promotional objectives? (5). What percent of the budget will go toward promotion? (6). How much for each items in your mix? (7). Will you do eMarketing?

  • Finding the Optimal Number of Advertising Hours

    Continuing with Smith's production analogy, what is the marginal product of advertising? B. Using the rule for optimal resource employment, determines the profit-maximizing number of flyer distribution hours. A.

  • Case Analysis: GE

    In addition, selected retailers must agree to comply with the company's rules for advertising, pricing, and displaying its products.

  • correlation between online and total retail sales

    Thus, marketing managers may need to increase advertising budget when sales increase or expect sales to increase when they increase advertising expenditures.

  • Evaluating Profit and Investment Preformance

    Victoria Smith manages the City Branch, which has the following master budget and actual results for the year.

  • Linear regression to justify advertising

    This is the y-intercept, and indicates the sales that occur with no advertising budget. Whenever we increase advertising, y increases by a factor of b, the coefficient of x.

View More Related Solutions