J.C. Riley, who owns Riley's Auto Repair Shop is trying to determine whether the company's advertising program is successful. He has used a spreadsheet program to estimate the relationship between advertising expenditures and sales dollars. Monthly data for the past two years were entered into the program. The regression results indicated the following:Sales dollars = $169, 000 ? ($200 × Advertising expenditures)Correlation coefficient = ?0.864To J.C., the results imply that advertising is actually reducing sales. Can you help explain to him what might cause the negative relationship between advertising expenditures and sales?
What will be an ideal response?
This is a frequently encountered problem when applying analytical techniques to certain costs. Quite often the advertising expenditures result in sales being generated in the following month or so. In addition, many companies increase their advertising when sales are declining and cut back on advertising when there is capacity business. A better model might be developed by relating this month's sales to last month's advertising.
Similar problems can also exist for repair and maintenance costs. This is because machines are usually given routine repairs and maintenance during slow periods.
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Answer the following statement true (T) or false (F)
Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"?
A) They use coupons. B) They prefer upscale stores. C) They prefer indoor shopping locations. D) They rarely dine out in expensive restaurants. E) They are motivated by deals on last year's merchandise.
The Federal Trade Commission enforces laws against deceptive advertising. Briefly discuss three types of deceptive advertising that would be considered illegal
What will be an ideal response?
Which sentence is correctly expressed?
A) ?Many Asian-American students displayed their native clothing during our college's cultural diversity week. B) ?Many Asian American students displayed their native clothing during our college's cultural diversity week. C) Many asian american students displayed their native clothing during our college's cultural diversity week.