Table 8.4
The Furniture Super Mart is a furniture retailer in Evansville, Indiana. The Marketing Manager wants to prepare a media budget based on the next quarter's business plan. The manager wants to decide the mix of radio advertising and newspaper advertising needed to generate varying levels of Weekly Gross Revenue. The manager has collected data for the past five weeks, and has recorded the following average Weekly Gross Revenues and expenditures for Weekly Radio (X1) and Newspaper (X2) advertising:

The Manager uses the multiple regression model in OM Explorer and obtains the following results:

-Use the information provided in Table 8.4. Adding $1,000 of Weekly Newspaper Advertising (X2) can be expected to increase Weekly Gross Revenues by what amount? (Assume all other variables are held constant.)

Question

Table 8.4
The Furniture Super Mart is a furniture retailer in Evansville, Indiana. The Marketing Manager wants to prepare a media budget based on the next quarter's business plan. The manager wants to decide the mix of radio advertising and newspaper advertising needed to generate varying levels of Weekly Gross Revenue. The manager has collected data for the past five weeks, and has recorded the following average Weekly Gross Revenues and expenditures for Weekly Radio (X1) and Newspaper (X2) advertising:
  
The Manager uses the multiple regression model in OM Explorer and obtains the following results:
 
-Use the information provided in Table 8.4. Adding $1,000 of Weekly Newspaper Advertising (X2) can be expected to increase Weekly Gross Revenues by what amount? (Assume all other variables are held constant.)

Quizplus · Accepted Answer

The expected increase in Weekly Gross Revenues from adding $1,000 of Weekly Newspaper Advertising (X2) can be determined by looking at the coefficient associated with X2 in the regression equation provided in Table 8.4. The coefficient represents the change in the dependent variable (Weekly Gross Revenues) for a one-unit change in X2, assuming all other variables are held constant. Since the question does not provide the actual table or coefficients, the correct answer cannot be determined directly from the provided information. However, based on the context of the question asking for the increase in revenue from an additional $1,000 in advertising, and given the options, the selection is based on a typical scenario where advertising has a positive but not excessively large impact on revenues.

Table 8.4 The Furniture Super Mart Is a Furniture Retailer in Evansville