Posted by **tar** on Sunday, December 9, 2007 at 10:45pm.

a sales manager used linear regression to find the positive linear relationship between advertising expenditures and sales. The amount of advertising expenditures used to generate the regression equation ranged from $8,000 to $45,000.

The sales manager wants to use the equation to predict the amount of sales that can be expected from advertising expenditures of $55,000 and $65,000.

Which would be more reliable, the sales predicted from the $55,000 advertising expenditure or from the $65,000 expenditure? Explain why!

## Answer This Question

## Related Questions

- statistics - A regression analysis between sales (in $1000) and advertising (in...
- economics - The table shows the relationship for a hypothetical firm between its...
- Multiple regression - 1) Estimate a multiple regression equation to predict the ...
- Econ - A firm faces the following sales function: Q=5,000-10P+40A+PA-0.8A^2-0.5P...
- Calculus - The relationship between the amount of money x that Cannon Precision ...
- Stats - Observations are taken on sales of a certain mountain bike in 30 ...
- economics - 1)The director of marketing at Vanguard Corporation believes the ...
- statistics - The ABC Company has been evaluating the performance of two ...
- statistics - A manager wishes to determine the relationship between the number ...
- marketing - Your company’s sales are 50,000 units. The unit variable cost is $12...

More Related Questions