Magazine Sales Narrative A Publisher Is Studying the Effectiveness of Advertising to Sell

question 162

Essay

Magazine Sales Narrative
A publisher is studying the effectiveness of advertising to sell a woman's magazine. She wishes to investigate the relationship between the number of magazines sold (10,000s), the "reach" (proportion of the population who see at least one advertisement for the magazine), and the average income of the target market ($1000s). The publisher suspects people at certain income levels might be more susceptible to this advertising campaign than others. Preliminary studies show there is no evidence of a quadratic relationship between sales and either of the other two variables. Use the output below to answer the questions.
The regression equation is
Sales = 3.1 + 10341 Reach + 0.871 Income + 3.256 Reach*Income S = 8.43 R-sq = 82.4%
Analysis of Variance
-Refer to Magazine Sales Narrative. Is there an interaction effect? Test at the 5% significance level.

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Definitions:

Long-term Trend

The overall direction of a market or asset's price movements over a prolonged period.

Trend

A pattern or direction, often observed in data sets, indicating a tendency or shift over time.

Time Series

A sequence of data points collected or recorded at time-ordered intervals, often used for forecasting and trend analysis.

Cyclical Variation

Fluctuations in statistical or economic data that occur over regular periods due to seasonal or economic cycles.