A manager claims that increases in advertising expenditure will surely raise the firm’s profits, citing his sense that people find the firm’s ads entertaining.? Sketch how you might
Activity I – A manager claims that increases in advertising expenditure will surely raise the firm's profits, citing his sense that people find the firm's ads entertaining.
- Sketch how you might refute this claim using:
- A theoretical argument
- Data
- Why might the refutation using data be more convincing?
Activity II – A grocery store manager is interested in the data-generating process for her store's weekly soda sales. She believes factors impacting these sales include price, product placement, and whether the week contains a holiday. Write out a formal representation of the data-generation process for weekly soda sales that incorporates these and additional factors.
Activity III – Access the dataset Sales and Costs.xlsx (See the attached) and answer the following questions.
- Calculate these descriptive statistics.
- Mean of sales
- Variance of materials costs
- Covariance of labor costs and materials costs
- Mean of labor costs
- Total sales
- Calculate at least two more descriptive statistics for this dataset.
Sheet1
| Region | Sales | Labor Costs | Materials Costs |
| 1 | $2,070,279.00 | $59,313.00 | $25,489.00 |
| 2 | $2,253,758.00 | $84,294.00 | $24,159.00 |
| 3 | $1,158,833.00 | $61,570.00 | $27,903.00 |
| 4 | $1,916,107.00 | $75,704.00 | $26,936.00 |
| 5 | $2,209,766.00 | $73,411.00 | $20,282.00 |
| 6 | $1,344,758.00 | $58,071.00 | $27,327.00 |
| 7 | $1,525,285.00 | $63,391.00 | $20,948.00 |
| 8 | $2,101,502.00 | $71,228.00 | $22,553.00 |
| 9 | $2,343,835.00 | $63,438.00 | $26,483.00 |
| 10 | $1,965,095.00 | $61,898.00 | $18,493.00 |
| 11 | $1,426,194.00 | $85,093.00 | $28,694.00 |
| 12 | $2,029,357.00 | $59,075.00 | $27,439.00 |
| 13 | $986,042.00 | $78,975.00 | $26,713.00 |
| 14 | $1,901,358.00 | $86,003.00 | $25,048.00 |
| 15 | $1,465,856.00 | $86,628.00 | $27,959.00 |
| 16 | $1,339,142.00 | $66,014.00 | $20,393.00 |
| 17 | $1,200,863.00 | $57,088.00 | $20,524.00 |
| 18 | $1,295,627.00 | $68,377.00 | $26,861.00 |
| 19 | $892,951.00 | $63,295.00 | $23,854.00 |
| 20 | $1,781,455.00 | $68,708.00 | $17,651.00 |
| 21 | $2,004,767.00 | $72,406.00 | $24,306.00 |
| 22 | $1,806,366.00 | $66,453.00 | $25,955.00 |
| 23 | $1,589,468.00 | $73,428.00 | $25,793.00 |
| 24 | $1,417,498.00 | $80,573.00 | $27,410.00 |
| 25 | $1,007,695.00 | $71,824.00 | $27,023.00 |
| 26 | $2,047,287.00 | $58,911.00 | $19,564.00 |
| 27 | $633,691.00 | $70,385.00 | $18,798.00 |
| 28 | $1,498,891.00 | $78,440.00 | $27,471.00 |
| 29 | $845,502.00 | $56,672.00 | $28,614.00 |
| 30 | $1,326,477.00 | $85,644.00 | $22,815.00 |
| 31 | $2,269,852.00 | $80,518.00 | $21,864.00 |
| 32 | $2,355,777.00 | $64,302.00 | $17,614.00 |
| 33 | $537,921.00 | $67,073.00 | $18,759.00 |
| 34 | $1,795,804.00 | $87,295.00 | $22,673.00 |
| 35 | $1,135,573.00 | $70,522.00 | $24,010.00 |
| 36 | $1,089,914.00 | $73,215.00 | $22,557.00 |
| 37 | $2,011,619.00 | $78,151.00 | $28,035.00 |
| 38 | $2,281,482.00 | $85,753.00 | $23,273.00 |
| 39 | $921,194.00 | $76,725.00 | $20,106.00 |
| 40 | $1,691,862.00 | $67,237.00 | $29,091.00 |
| 41 | $1,268,440.00 | $73,632.00 | $28,556.00 |
| 42 | $1,569,321.00 | $80,347.00 | $20,155.00 |
| 43 | $823,068.00 | $80,167.00 | $19,767.00 |
| 44 | $1,524,685.00 | $75,288.00 | $26,404.00 |
| 45 | $1,908,126.00 | $63,282.00 | $25,759.00 |
| 46 | $1,566,024.00 | $69,968.00 | $22,545.00 |
| 47 | $1,619,888.00 | $83,180.00 | $28,056.00 |
| 48 | $808,591.00 | $68,919.00 | $23,179.00 |
| 49 | $1,040,239.00 | $67,078.00 | $19,997.00 |
| 50 | $997,462.00 | $75,289.00 | $29,025.00 |
| 51 | $801,630.00 | $68,497.00 | $18,740.00 |
| 52 | $1,886,438.00 | $67,231.00 | $27,850.00 |
| 53 | $864,289.00 | $83,353.00 | $21,987.00 |
| 54 | $544,624.00 | $81,315.00 | $27,823.00 |
| 55 | $1,287,403.00 | $87,633.00 | $22,756.00 |
| 56 | $890,054.00 | $56,083.00 | $20,547.00 |
| 57 | $2,239,090.00 | $86,178.00 | $27,994.00 |
| 58 | $2,262,311.00 | $57,910.00 | $24,894.00 |
| 59 | $1,080,190.00 | $87,059.00 | $24,367.00 |
| 60 | $2,147,915.00 | $80,572.00 | $25,795.00 |
| 61 | $2,396,990.00 | $80,957.00 | $19,901.00 |
| 62 | $1,417,255.00 | $58,839.00 | $27,052.00 |
| 63 | $1,157,278.00 | $69,583.00 | $28,822.00 |
| 64 | $1,134,178.00 | $80,016.00 | $29,467.00 |
| 65 | $2,345,258.00 | $73,865.00 | $19,903.00 |
| 66 | $1,672,436.00 | $81,601.00 | $26,807.00 |
| 67 | $2,345,143.00 | $63,813.00 | $18,103.00 |
| 68 | $2,261,119.00 | $76,714.00 | $26,727.00 |
| 69 | $1,866,284.00 | $81,186.00 | $25,151.00 |
| 70 | $1,580,449.00 | $73,410.00 | $25,915.00 |
| 71 | $646,655.00 | $75,838.00 | $26,430.00 |
| 72 | $1,056,578.00 | $74,259.00 | $28,569.00 |
| 73 | $1,732,073.00 | $70,017.00 | $22,004.00 |
| 74 | $2,101,072.00 | $87,546.00 | $17,993.00 |
| 75 | $718,115.00 | $57,482.00 | $22,655.00 |
| 76 | $1,976,968.00 | $77,448.00 | $24,843.00 |
| 77 | $2,021,155.00 | $81,244.00 | $24,262.00 |
| 78 | $920,032.00 | $68,843.00 | $28,814.00 |
| 79 | $1,176,260.00 | $83,347.00 | $19,435.00 |
| 80 | $1,795,298.00 | $84,689.00 | $21,987.00 |
| 81 | $1,238,913.00 | $76,721.00 | $22,590.00 |
| 82 | $1,193,492.00 | $73,115.00 | $28,932.00 |
| 83 | $1,917,295.00 | $84,008.00 | $21,393.00 |
| 84 | $1,917,107.00 | $63,529.00 | $22,760.00 |
| 85 | $1,111,683.00 | $75,823.00 | $20,284.00 |
| 86 | $2,358,103.00 | $62,489.00 | $24,670.00 |
| 87 | $1,512,228.00 | $78,675.00 | $22,574.00 |
| 88 | $2,365,887.00 | $77,698.00 | $22,541.00 |
| 89 | $1,220,109.00 | $69,343.00 | $18,787.00 |
| 90 | $1,582,269.00 | $87,323.00 | $20,135.00 |
| 91 | $1,694,185.00 | $59,479.00 | $23,110.00 |
| 92 | $1,172,850.00 | $56,737.00 | $21,527.00 |
| 93 | $719,072.00 | $88,180.00 | $21,478.00 |
| 94 | $761,940.00 | $70,907.00 | $29,386.00 |
| 95 | $654,623.00 | $65,953.00 | $19,344.00 |
| 96 | $1,754,492.00 | $63,005.00 | $19,231.00 |
| 97 | $2,100,389.00 | $73,282.00 | $20,066.00 |
| 98 | $2,112,363.00 | $72,606.00 | $24,597.00 |
| 99 | $1,900,468.00 | $76,151.00 | $23,548.00 |
| 100 | $927,771.00 | $85,190.00 | $26,457.00 |
| 101 | $1,335,138.00 | $64,275.00 | $24,610.00 |
| 102 | $1,021,173.00 | $77,647.00 | $19,816.00 |
| 103 | $1,146,799.00 | $73,662.00 | $24,943.00 |
| 104 | $2,066,518.00 | $57,254.00 | $17,847.00 |
| 105 | $1,932,132.00 | $75,716.00 | $23,913.00 |
| 106 | $919,282.00 | $82,506.00 | $29,471.00 |
| 107 | $2,141,066.00 | $75,596.00 | $27,372.00 |
| 108 | $599,061.00 | $62,359.00 | $24,159.00 |
| 109 | $1,411,500.00 | $61,139.00 | $26,711.00 |
| 110 | $2,389,813.00 | $72,706.00 | $18,468.00 |
| 111 | $2,377,562.00 | $78,447.00 | $27,798.00 |
| 112 | $535,614.00 | $76,687.00 | $21,539.00 |
| 113 | $2,147,780.00 | $58,931.00 | $29,267.00 |
| 114 | $2,137,903.00 | $57,422.00 | $28,743.00 |
| 115 | $1,230,437.00 | $73,808.00 | $29,166.00 |
| 116 | $995,140.00 | $62,161.00 | $17,868.00 |
| 117 | $1,387,932.00 | $69,869.00 | $26,738.00 |
| 118 | $550,332.00 | $86,126.00 | $22,865.00 |
| 119 | $653,114.00 | $74,309.00 | $26,982.00 |
| 120 | $1,610,589.00 | $85,271.00 | $26,716.00 |
| 121 | $1,459,722.00 | $69,595.00 | $22,494.00 |
| 122 | $1,051,652.00 | $87,409.00 | $26,092.00 |
| 123 | $941,630.00 | $68,080.00 | $27,530.00 |
| 124 | $1,254,743.00 | $59,737.00 | $18,836.00 |
| 125 | $1,218,564.00 | $64,344.00 | $20,925.00 |
| 126 | $1,203,395.00 | $59,236.00 | $25,071.00 |
| 127 | $550,153.00 | $56,128.00 | $23,266.00 |
| 128 | $586,207.00 | $72,952.00 | $23,341.00 |
| 129 | $2,128,845.00 | $72,209.00 | $28,773.00 |
| 130 | $2,193,410.00 | $84,652.00 | $20,450.00 |
| 131 | $533,211.00 | $65,444.00 | $20,040.00 |
| 132 | $1,499,001.00 | $85,194.00 | $23,602.00 |
| 133 | $1,232,044.00 | $59,434.00 | $19,998.00 |
| 134 | $1,173,982.00 | $83,325.00 | $21,826.00 |
| 135 | $1,735,144.00 | $80,895.00 | $22,102.00 |
| 136 | $1,824,943.00 | $60,482.00 | $20,154.00 |
| 137 | $1,943,972.00 | $75,832.00 | $26,613.00 |
| 138 | $1,783,202.00 | $70,814.00 | $28,130.00 |
| 139 | $615,007.00 | $72,724.00 | $28,755.00 |
| 140 | $1,073,409.00 | $73,356.00 | $24,640.00 |
| 141 | $1,324,584.00 | $56,036.00 | $28,007.00 |
| 142 | $1,572,545.00 | $59,405.00 | $27,291.00 |
| 143 | $2,142,207.00 | $83,025.00 | $27,538.00 |
