CHAPTER 4 BOOK ANSWERS.docx

CHAPTER 4 BOOK ANSWERS.docx - CHAPTER 4 BOOK ANSWERS 1 A...

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CHAPTER 4 BOOK ANSWERS 1. A. The marketing director expects coefficients a and b to be positive as they effect directly the sales and coefficient b to be negative as it negatively affects the sales of Bright Side Detergents. b. Coefficient “a” explains that the sales would be equal to a when the advertisement expenditure of Vanguard and Rivals are zero. Coefficient “b” states that an increase in (A) would increase the sales S by b times. Coefficient “c” explains that an increase in (R) will decrease the sales by c times. c. The p-value of V Corporation’s advertisement expenditure (A) is 1.28%. This means there is more than 98% confidence interval. Therefore Vanguard’s advertisement has significant effectiveness on sales of Bright Side Detergents. d. The p-value of Rival’s advertisement expenditure (R) is 9.27%, which is less than 10%. This means there is more than 90% confidence interval. Therefore Rival’s advertisement has significant effectiveness on sales of Bright Side Detergents.
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