Your firm is attempting to learn the effectiveness of a newly developed television ad on its sales. To do this, it has randomly run the ad between 0 and 5 times during one week across
Your firm is attempting to learn the effectiveness of a newly developed television ad on its sales. To do this, it has randomly run the ad between 0 and 5 times during one week across a large number of television markets in the United States. It then recorded product sales for the following month for each market. To conduct the analysis, analysts at the firm have assumed the following data-generating process:
Salesi=α+βAdsi+Ui
Regressing Sales on Ads yields βˆ=350. The firm would like to use this number to project the change in Sales when increasing weekly television ads to 20.
- According to these results, what is the expected change in Sales when Ads increase from 5 to 20?
- Why should we be skeptical of our result from Part a?
- What can you do to find an estimate of the effect of increasing Ads from 5 to 20 that is more credible?
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
