The following table gives data for the U K on total consumer expenditure (in pound millions) and advertising expenditure (in pound millions) for 29 product categories a Considering the various functional forms we have discussed in the chapter, which functional form might fit the data given in above...

a The scattergram of total consumer expenditure and advertising expenditure is as follows b Although ...

The following table gives data for the U.K. on total consumer expenditure (in £ millions) and advertising

Question:

The following table gives data for the U.K. on total consumer expenditure (in £ millions) and advertising expenditure (in £ millions) for 29 product categories.

obs ADEXP CONEXP RATIO 87957.00 13599.00 0.006468 2 23578.00 4699.000 0.005018 3 16345.00 5473.000 0.002986 4 6550.000 6

a. Considering the various functional forms we have discussed in the chapter, which functional form might fit the data given in above table?
b. Estimate the parameters of the chosen regression model and interpret your results.
c. If you take the ratio of advertising expenditure to total consumer expenditure, what do you observe? Are there any product categories for which this ratio seems unusually high? Is there anything special about these product categories that might explain the relatively high expenditure on advertising?