or the past 10 years, you have been observing the sales of your company since you embarked on an aggressive advertising campaign. You have been recording the amounts spent on advertising and the corresponding sales as follows: Year Advert (X) Sales (Y) 2001 10 44 2002 9 40 2003 11 42 2004 12 46 2005 11 48 2006 12 52 2007 13 54 2008 13 58 2009 14 56 2010 15 60 You would like to determine whether a relationship exists between your two variables of interest and therefore decide to run a regression. a) Specify the estimation model you will use (the econometric form). b) Re-write the specified model in (a) with values from the regression results and interpret the coefficients.
or the past 10 years, you have been observing the sales of your company since you embarked on an aggressive advertising campaign. You have been recording the amounts spent on advertising and the corresponding sales as follows: Year Advert (X) Sales (Y) 2001 10 44 2002 9 40 2003 11 42 2004 12 46 2005 11 48 2006 12 52 2007 13 54 2008 13 58 2009 14 56 2010 15 60 You would like to determine whether a relationship exists between your two variables of interest and therefore decide to run a regression. a) Specify the estimation model you will use (the econometric form). b) Re-write the specified model in (a) with values from the regression results and interpret the coefficients.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
For the past 10 years, you have been observing the sales of your company since you embarked on an aggressive advertising campaign. You have been recording the amounts spent on advertising and the corresponding sales as follows:
|
Year |
Advert (X) |
Sales (Y) |
|
2001 |
10 |
44 |
|
2002 |
9 |
40 |
|
2003 |
11 |
42 |
|
2004 |
12 |
46 |
|
2005 |
11 |
48 |
|
2006 |
12 |
52 |
|
2007 |
13 |
54 |
|
2008 |
13 |
58 |
|
2009 |
14 |
56 |
|
2010 |
15 |
60 |
You would like to determine whether a relationship exists between your two variables of interest and therefore decide to run a regression.
a) Specify the estimation model you will use (the econometric form).
b) Re-write the specified model in (a) with values from the regression results and interpret the coefficients.
b) Re-write the specified model in (a) with values from the regression results and interpret the coefficients.
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