Case1 - BUAD 310 Case 1(Total 100 points Due Tuesday in...

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BUAD 310 Case 1 (Total 100 points) Due Tuesday, April 29, 2008 in class In this case you will apply statistical techniques learned in the Regression part of BUAD 310. Instructions: This exercise uses data from the file MagazineAds.MTW which you can download from Blackboard. The entire case should be typed in word document and clearly written and submitted with supporting documents (Minitab printouts). The printouts can be directly copied and pasted into the word document. You do not need to attach any graphs with your final document , but please include the relevant numerical output so we can cross-check your answers with the output. Magazine Advertising What factors influence the price of advertisements in magazines? Suppose you are part of a team of consultants hired by a retail clothing company wishing to place advertisements in at least one magazine. They are curious about what types of costs they can expect for magazines with different readership bases so they most effectively utilize their advertising budget. Your team has collected a dataset of 48 consumer magazines and has found that the mean cost for a one-page advertisement is $83,534, but the standard deviation is $45,446. What number should be used to best estimate the advertising costs? Your team realizes that there may be many variables affecting cost of a one-page advertisement. You have augmented the original dataset of 48 magazines by measuring more characteristics of the magazines and their audiences that may be useful in understanding the one-page advertisement costs better. The variables are the following 1 : Magazine Name Cost of a four-color, one-page ad Circulation (projected, in thousands ) Percent male among the predicted readership Median household income of readership Your goal is to analyze the data with Minitab using Multiple Linear Regression methods and choose the best model to explain the differences in advertising costs between the different titles and then to predict what the retail clothing company should expect to pay for advertising in the different magazines. Answer the following questions:
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This note was uploaded on 10/12/2008 for the course BUAD 310 taught by Professor Lv during the Spring '07 term at USC.

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Case1 - BUAD 310 Case 1(Total 100 points Due Tuesday in...

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