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Sportswear Manufacturer: Relationship between Advertising, Coupon Value and Sales

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Question: A sportswear manufacturer wishes to investigate the relationship between the level of advertising, coupon value and sales. The manufacturer advertises several times a month and includes a manufacturer coupon (in dollars) with each advertisement. The value of the coupon remains the same in a month, but varies from month to month. The manufacturer expects that the number of advertisements and coupon value have a positive impact on sales. In addition, the manufacturer expects that the impact of advertisements increases as the coupon value increases. The manufacturer collects the sales (in thousands of dollars), number of ads and coupon value for the last one year. Express the regression model that the company must use, state the null and alternate hypothesis, estimate the model and provide interpretation. When the manufacturer advertises 5 times in a month and includes a $3 coupon, what is the expected sales? Use alpha = 0.05.

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A sportswear manufacturer wishes to investigate the relationship between level of advertising, coupon value and sales. The manufacturer advertises several times a month and includes a manufacturer coupon (in dollars) with each advertisement. The value of the coupon remains the same in a month but varies from month to month. The manufacturer expects that the number advertisements and coupon value have a positive impact on sales. In addition, the manufacturer expects that the impact of advertisements increases as the coupon value increases. The manufacturer collects the sales (in thousands of dollars), number of ads and coupon value for the last one year. The data is in sportswear.sav. Express the ...

Solution Summary

The relationships between advertising for a sportswear manufacturer is examined.

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