Question

In: Statistics and Probability

Think of the example of store traffic and advertising dollars in class. What will be the...

Think of the example of store traffic and advertising dollars in class. What will be the store traffic if you use $200 ad budget in the following prediction equations:

1.   150+0.52(ad_budget)
2.   150+0.37(ad_budget)
3.   150+0.62(ad_budget)
4.   150-0.05(ad_budget)
5.   150-0.02(ad_budget)

Think of the example of newspaper, radio, and TV regression in class. Imagine that newspapers is the base case dummy variable. What will be the store traffic for using radio only and using TV only in the following prediction equations:

1.   700+150(Radio)+200(TV)
2.   250+500(Radio)+700(TV)
3.   600-50(Radio)+100(TV)
4.   550-75(Radio)-125(TV)
5.   250-65(Radio)+65(TV)

Solutions

Expert Solution

Answer 1

We want to know the store traffic when the ad budget is $200. We will set ad budget = $200 in each equation and calculate store traffic

1.   150+0.52(ad_budget)

=150+0.52*200

= 150 + 104

= $254


2.   150+0.37(ad_budget)

=150+0.37(200)

= 150 + 74

= $224

3.   150+0.62(ad_budget)

= 150 + 0.62*(200)

= 150 + 124

= $274

4.   150-0.05(ad_budget)

= 150 - 0.05(200)

= 150 - 10

= $140


5.   150-0.02(ad_budget)

= 150 - 0.02*(200)

= 150 - 4

= $146

Answer 2

In case of dummy variables, we use only 1 and 0 to show the required value for y or dependent variable.

To calculate store traffic using radio only, then put radio = 1 and Tv = 0 in each equation

1.   700+150(Radio)+200(TV)

= 700+150(1)+200(0)

= 700 + 150 + 0

= $850

2.   250+500(Radio)+700(TV)

=250+500(1)+700(0)

= 250 + 500 + 0

= $750

3.   600-50(Radio)+100(TV)

=600-50(1)+100(0)

= 600 - 50 + 0

= $550

4.   550-75(Radio)-125(TV)

= 550-75(1)-125(0)

= 550-75 -0

= $475


5.   250-65(Radio)+65(TV)

=250-65(1)+65(0)

= 250 - 65 + 0

= $185

To calculate store traffic using TV only, then put radio = 0 and Tv = 1 in each equation

1.   700+150(Radio)+200(TV)

= 700+150(0)+200(1)

= 700 + 0 + 200

= $900

2.   250+500(Radio)+700(TV)

=250+500(0)+700(1)

= 250 + 0 + 700

= $950

3.   600-50(Radio)+100(TV)

=600-50(0)+100(1)

= 600 - 0 + 100

= $700

4.   550-75(Radio)-125(TV)

= 550-75(0)-125(1)

= 550-0 - 125

= $425


5.   250-65(Radio)+65(TV)

=250-65(0)+65(1)

= 250 - 0 + 65

= $315

orchestra answered 2 years ago
Next > < Previous

Related Solutions

Verizon spends millions of dollars each year on advertising for many different purposes. Provide an example...
Verizon spends millions of dollars each year on advertising for many different purposes. Provide an example of how it might design an informative ad, a persuasive ad, and a reminder ad.
What do you think about the statement of “advertising is a part of promotion, and advertising...
What do you think about the statement of “advertising is a part of promotion, and advertising is the most important tool to reach customers value and satisfaction if compared with other promotion such as public relation( PR), discount, personal selling and etc. Please explicit your group ideas
What do you think of advertising on Facebook? Why?
What do you think of advertising on Facebook? Why?
1. Think about a good that is available in your local grocery store. Describe one example...
1. Think about a good that is available in your local grocery store. Describe one example each of an event that would a. increase demand for that good; b. decrease demand; c. increase supply; d. decrease supply. Please be creative and think about factors not just for the grocery store and consumer, but also for producers and distributors, other goods, and non-consumers. 2. Please describe your own personal price elasticity of demand for a normal good that you consume for...
1. Think about a good that is available in your local grocery store. Describe one example...
1. Think about a good that is available in your local grocery store. Describe one example each of an event that would 1) increase demand for that good; 2) decrease demand; 3) increase supply; 4) decrease supply. Please be creative and think about factors not just for the grocery store and consumer, but also for producers and distributors, other goods, and non-consumers. 2. Please describe your own personal price elasticity of demand for a normal good that you consume for...
Read the following examples of advertising. For each example, determine the step in the advertising process....
Read the following examples of advertising. For each example, determine the step in the advertising process. Target Audience, Advertising Objectives, Advertising Platform, Advertising Appropriation, Media Plan, Advertising Message, Executing, Evaluating Walmart adopted the basic selling point of “every day low prices” as part of its major marketing campaigns Procter & Gamble set aside $20 million for its advertising campaign to market a new product Janice works at an advertising agency, where her job is to take the concepts and draft...
The chart below lists the sales in thousands of dollars based on the advertising budget for...
The chart below lists the sales in thousands of dollars based on the advertising budget for that quarter. The regression equation is Y' = 4.073 + 0.8351X. What is the correlation coefficient? Advertising ($hunderds) Sales ($thousands) 0 5 3 5.5 4 7 5 7.8 6 9 7 11 Multiple Choice 0.775 0.844 0.926 1.00
you are advertising the owner of today convenience store, a new, franchised 24 hrs open store....
you are advertising the owner of today convenience store, a new, franchised 24 hrs open store. today she also sell daily necessities fast food and snack to cuetomers for a price that is on avarage slightly higher than other stores . what conpetitive strategies could today could today convenience store excert? which one will have defficulty excercising?
2. Discuss the role and importance of creativity in advertising, Do you think advertising agencies often...
2. Discuss the role and importance of creativity in advertising, Do you think advertising agencies often emphasize creativity at the expense of developing ads that can help generate sales for a product or service? What can clients do to avoid this problem? 4. The chapter discusses how advertising agencies are sometimes fired even though they create award-winning ads and campaigns for their clients. Evaluate the decision by companies such as AB InBev to dismiss their ad agency and hire a...
Consider the following data on the estimated cost (in millions of dollars) resulting from traffic congestion...
Consider the following data on the estimated cost (in millions of dollars) resulting from traffic congestion for different urban areas. The following are the data for the 13 largest U.S. urban areas. Urban Area Total Cost (millions of dollars) New York 16 Los Angeles 13 Chicago 7 Washington, D.C. 5 Houston 5 Dallas, Fort Worth 4 Detroit 4 Miami 4 Phoenix 4 Philadelphia 4 San Francisco 3 Boston 3 Atlanta 3 (a) Calculate the mean and standard deviation for this...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT