# Question

If a firm spends more on advertising, is it likely to increase sales? Data on annual sales (in $100,000s) and advertising expenditures (in $10,000s) were collected for 20 firms in order to estimate the model Sales = β0 + β1 Advertising + .

A portion of the Excel results is as follows:

a. Is the sign on the slope as expected? Explain.

b. What is the sample regression equation?

c. Predict the sales for a firm that spends $500,000 annually onadvertising.

A portion of the Excel results is as follows:

a. Is the sign on the slope as expected? Explain.

b. What is the sample regression equation?

c. Predict the sales for a firm that spends $500,000 annually onadvertising.

## Answer to relevant Questions

The consumption function captures one of the key relationships in economics that was first developed by John Maynard Keynes. It expresses consumption as a function of disposable income, where disposable income is income ...In a multiple regression, the following sample regression equation is obtained: = 152 + 12.9x1 + 2.7x2.a. Predict y if x1 equals 20 and x2 equals 35.b. Interpret the slope coefficient of x1.A sociologist believes that the crime rate in an area is significantly influenced by the area’s poverty rate and median income. Specifically, she hypothesizes crime will increase with poverty and decrease with income. She ...In a multiple regression with two explanatory variables, the following intermediate data are given: n = 50, Σ(yi - )2 = 35 , and Σ(yi - )2 = 90.a. Calculate the standard error of the estimate.b. Calculate the coefficient ...For a sample of 41 New England cities, a sociologist studies the crime rate in each city (crimes per 100,000 residents) as a function of its poverty rate (in %) and its median income (in $1,000s). A portion of the regression ...Post your question

0