Advertising strategy for CoffeeTime based on hypothesis testing
Not what you're looking for?
Problem 1
Laura wanted to build a multiple regression model based on advertising expenditures and coffee time's price index. Based on the selection of all normal values she obtained the following:
1) Multiple R = 0.738
2) R-square = 0.546
By using lagged values she came up with the following:
3) Multiple R = 0.755
4) R-square = 0.570
Explain the differences in using these different models. How could CoffeeTime further optimize this model?
Problem 2
Tourism is one consideration for CoffeeTime's future. A survey of 1,233 visitors to Mumbai last year revealed that 110 visited a small café during their visit. Laura claims that 10% of tourists will include a visit to a café. Use a 0.05 significance level to test her claim.
a. Would it be wise for her to use that claim in trying to convince management to increase their advertising spending to travel agents? Explain.
b. What additional strategy (or variation on a given strategy) would you recommend to the key decision maker in the simulation to solve the challenge given?
Purchase this Solution
Solution Summary
The solution helps a company CoffeeTime decide on its advertising strategy based on an analysis of a regression and then subsequent hypothesis testing.
Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
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.
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.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.