Ask Question
14 November, 07:44

A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts several experiments, each time spending less than $1,000 in advertising. When she analyzed the relationship between x = advertising spending and y = product sales, the relationship was linear with r=0.90. Her boss is thrilled and asks her to estimate product sales for $100,000 in advertising spending. Is it appropriate for her to calculate a predicted amount of product sales with advertising spending of $100,000?

A. Yes, because the association is linear.

B. Yes, because the association is positive.

C. Yes, because the association is strong.

D. No, because the value of the correlation is not equal to 1.

E. No, because $100,000 is much greater than the values used in the experiment.

+1
Answers (1)
  1. 14 November, 08:57
    0
    No, because 100,000 is much greater than the values used in the experiment

    Explanation:

    The advertisement budget is an estimation of the company's commercial spending for a specified amount of time. More specifically, it is the capital that a organisation is able to put aside to accomplish its marketing goals.

    In developing an advertisement budget, a corporation must balance the importance of the promotional dollar against the value of the dollar as known revenue.

    Better promotional budgets - and campaigns - focus on consumers' desires and address their challenges, not on business concerns such as overstock elimination.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts several ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers