4-2Consider the following sample data for the relationship between advertising budget and sales for Product A:Observation12345678910Advertising ($)80,00080,00090,000100,000100,000110,000120,000120,000130,000140,000Sales ($)499,000477,000546,000614,000623,000653,000747,000714,000785,000858,000 What is the predicted sales quantity for an advertising budget of $108,000?Please round your answer to the nearest integer.Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.

We have been provided the sales data with the advertising for 10 observatiosn. In order to predict the sales quantity for an advertising budget of $108,000, we will calculate linear regression coefficients by using the built-in LINEST function and then to predict the sales =INTERCEPT+ LINEST * 108,000 which can also be calculated by Sales = m * Advertising Budget + b, where m is the slope and b is the y intecept Thus, the predicted sales quantity for an advertising budget of $108,000 is $657,644

Answered: 4-2 Consider the following sample data…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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4-2

Consider the following sample data for the relationship between advertising budget and sales for Product A:

Observation	1	2	3	4	5	6	7	8	9	10
Advertising ($)	80,000	80,000	90,000	100,000	100,000	110,000	120,000	120,000	130,000	140,000
Sales ($)	499,000	477,000	546,000	614,000	623,000	653,000	747,000	714,000	785,000	858,000