A Marketing Consultant Would Like to Analyse Whether an Advertisement

question 5

Multiple Choice

A marketing consultant would like to analyse whether an advertisement is recalled or not by a group of consumers, predicted by the number of hours of television they watch. He has received various pieces of advice from colleagues. Which should he listen to?

• A) Logistic regression is not suitable with this predictor variable.
• B) Logistic regression is not suitable as the dependent variable only has two categories.
• C) Logistic regression is not suitable as only one predictor variable is postulated.
• D) Logistic regression is perfectly acceptable for this model.

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Definitions:

Operating Costs

Expenses associated with running a business on a day-to-day basis, such as rent, utilities, and payroll, excluding costs associated with producing goods.

Factory Overhead

Encompasses all indirect costs involved in manufacturing, excluding direct materials and direct labor, such as utilities and rent for the manufacturing space.

Labor Costs

Expenses incurred by companies for the wages, salaries, and benefits paid to their employees.

Advertising Expense

The cost incurred to promote products, services, or the overall brand, which is often reported on the income statement.