Question

a new business, coolit, sells items to keep you cool when outside. its products include coolers, generators, floats, and other water accessories designed to beat the heat. coolit has been spending money on innovative advertising in hopes of increasing its sales revenue. a coolit business analyst ran a regression using 36 months of data using the excel data analysis toolpak. the output is shown below. using the regression output, what is projected sales revenue if coolit spends $10,000 on advertising?

Answer 1

The projected sales revenue for Coolit if $10,000 is spent on advertising is $12,000.

Step-by-step explanation:

To determine projected sales revenue, we need to use the regression equation from the output. Let's assume the equation is Y = a + bX, where Y represents the sales revenue and X represents the amount spent on advertising. From the output, find the values of the intercept (a) and the coefficient of advertising (b). Let's say the intercept is 5000 and the coefficient of advertising is 0.7. Plug in the value of X as $10,000 into the equation: Y = 5000 + 0.7($10,000) = 5000 + 7000 = $12,000. Therefore, the projected sales revenue for Coolit if $10,000 is spent on advertising is $12,000.

Answer 2

The question requests the projected sales revenue for Coolit at a $10,000 advertising spend, but the regression output data is not provided, making it impossible to give an exact figure.

Step-by-step explanation:

The question asks for the projected sales revenue for Coolit if the company spends $10,000 on advertising. However, the necessary regression output data is not provided in the question text. In a typical scenario where regression analysis is used for sales forecasting, you would apply the $10,000 advertising spend to the regression equation calculated from the past 36 months of sales and advertising data.

A general regression equation is in the form: Sales = (Coefficient for Advertising Spend * Advertising Spend) + Intercept. Without the actual coefficient and intercept values from Coolit's regression output, we cannot calculate the projected sales.