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Regression Model: Estimate expected sales using coupons in newspaper advertising

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A consumer packaged goods company puts out several advertisements every month in the local news paper and includes a discount coupon with the advertisements. The company has collected data on the number of advertisements it ran for the last 12 months as well as the dollar value of the coupon offered in each of the last 12 months. The sales (in thousands of dollars) is also recorded. The company wishes to investigate the impact of advertising and coupon value on sales. The company suspects that advertising and coupon value have a positive impact on sales. Express the regression model that the company must use, state the null and alternate hypothesis, estimate the model and provide interpretation. Given the results of your estimation, what are the expected sales in a month where 8 advertisements were put out using a $3 coupon. The data is in coupon.sav

Assume alpha=0.05 for all questions

SPSS is needed to open the data file.

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Solution Summary

The solution provides a step by step method for the calculation of regression analysis in SPSS. Formula for the calculation and interpretations of the results are also included.