Question: P&G wants to know if there is a correlation between local radio advertising spend and local grocery sales of its various brands. The data is
P&G wants to know if there is a correlation between local radio advertising spend and local grocery sales of its various brands. The data is as follows:
Net sales in local stores Jan - March 2021
Swiffer $20,000
Pampers $800,000
Crest White Strips $10,000
Tide $250,000
Dove $500,000
Olay $500,000
Cover Girl $250,000
Gillette $250,000
Mr. Clean $300,000
Charmin $1,000,000
Local Advertising Spend Jan - March 2021
Swiffer $0
Pampers $15,000
Crest White Strips $5,000
Tide $10,000
Dove $50,000
Olay $25,000
Cover Girl $30,000
Gillette $75,000
Mr. Clean $35,000
Charmin $100,000
Use the data above to determine the correlation coefficient r
Based on your calculation of r, explain if there is a correlation between local net sales of P&G's products and local radio advertising.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
