Suppose a Marketer Was Trying to Predict the Sales (Y)of

question 4

Essay

Suppose a marketer was trying to predict the sales (Y)of a product for a given level of advertising (X₁)and sales performance (X₂).The resulting output was as follows:
Y = 2,300 + 34(X₁)+ 15.5(X₂)with a R² = .12
Given the above results,what would you suggest to the marketer?

---

Definitions:

Mean Distribution

A statistical term describing the central tendency of a probability distribution, often interpreted as the average of a set of values.

Portfolio Theory

A framework for constructing a portfolio of assets aimed at maximizing return for a given level of risk.

Business-Specific Risk

Variation in the return on a stock investment caused by things that affect specific businesses or industries.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.