J.C. Riley, who owns Riley's Auto Repair Shop is trying to determine whether the company's advertising program is successful. He has used a spreadsheet program to estimate the relationship between advertising expenditures and sales dollars. Monthly data for the past two years were entered into the program. The regression results indicated the following:
Sales dollars = $169, 000 − ($200 × Advertising expenditures)
Correlation coefficient = −0.864
To J.C., the results imply that advertising is actually reducing sales. Can you help explain to him what might cause the negative relationship between advertising expenditures and sales?

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The Answer of J.C. Riley, who owns Riley's Auto Repair Shop is trying to determine whether the company's advertising program is successful. He has used a spreadsheet program to estimate the relationship between advertising expenditures and sales dollars. Monthly data for the past two years were entered into the program. The regression results indicated the following:
Sales dollars = $169, 000 − ($200 × Advertising expenditures)
Correlation coefficient = −0.864
To J.C., the results imply that advertising is actually reducing sales. Can you help explain to him what might cause the negative relationship between advertising expenditures and sales?

JC Riley, Who Owns Riley's Auto Repair Shop Is Trying