Advertisement and sales are two important elements which are vital for the growth of an organization. Lakamuun
Question:
Advertisement and sales are two important elements which are vital for the growth of an organization. Lakamuun incorporated is a company that specializes in the production of chromocratic papers. The weekly expenditure on adverts ( ) and the weekly sales ( ) are presented in the table below.
Weekly sales (GH¢) | Weekly adverts (GH¢) |
5000 | 350 |
6000 | 413 |
3500 | 230 |
8000 | 631 |
4500 | 285 |
6000 | 321 |
7000 | 431 |
8500 | 461 |
8100 | 313 |
8100 | 303 |
Required
(a) Compute
i. Covariance
ii. Coefficient of correlation
iii. Interpret your findings
(b) Estimate the least square line using least square method
(c) Using the regression line above estimate the following
(i) Weekly sales if an expenditure of GH¢2150 is spent on adverts.
(ii) How much should be spent on adverts if GH¢64500 was generated as sales.
(d) Base on the above estimations in C above, what recommendations would you make to Lakamuun Inc.
Advertising Promotion and Other Aspects of Integrated Marketing Communications
ISBN: 9781111580216
9th edition
Authors: Terence Shimp, Craig Andrews