TABLE 1.6 Impact of Advertising Expenditure Source: http://lib.stat.cmu.edu/ DASL/Datafiles/tvadsdat.html. Impressions, Expenditure, millions of 1983 dollars Firm millions 1. Miller Lite 32.1 50.1 2. Pepsi 99.6 74.1 3. Stroh's 11.7 19.3 4. Fed'l Express 21.9 22.9 5. Burger King 60.8 82.4 6. Coca-Cola 78.6 40.1 7. McDonald's 92.4 185.9 8. MCI 50.7 26.9 9. Diet Cola 21.4 20.4 10. Ford 40.1 166.2 11. Levi's 40.8 27.0 12. Bud Lite 10.4 45.6 13. ATT/Bell 88.9 154.9 14. Calvin Klein 12.0 5.0 15. Wendy's 29.2 49.7 16. Polaroid 38.0 26.9 17. Shasta 10.0 5.7 18. Meow Mix 12.3 7.6 19. Oscar Meyer 23.4 9.2 20. Crest 71.1 32.4 21. Kibbles 'N Bits 4.4 6.1
Q. Please draw a graph as indicated in the problem and answer the question
The data presented in Table were published in the March 1, 1984, issue of The Wall Street Journal. They relate to the advertising budget (in millions of dollars) of 21 firms for 1983 and millions of impressions were retained per week by the viewers of the products of these firms. The data are based on a survey of 4000 adults in which users of the products were asked to cite a commercial they had seen for the product category in the past week.
a. Plot impressions on the vertical axis and advertising expenditure on the horizontal axis.
b. What can you say about the nature of the relationship between the two variables?
c. Looking at your graph, do you think it pays to advertise? Think about all those
commercials shown on Super Bowl Sunday or during the World Series.
Please provide an explanation in detail as well.
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