The head of retail sales at a large cosmetic company was interested in determining what the best marketing model was for launching a forthcoming new product to ensure high sales. She ran two separate simple linear regressions; the first used money spent on social media marketing as a predictor and the second had money spent on print media as a predictor. The model featuring social media marketing as a predictor had a R²of .665, an adjusted R²of .661, an F-statistic of 112.56 (p 0.00) .
The model featuring print media marketing as a predictor had a R²of .665, an adjusted R²of .15, an F-statistic of 34 (p 0.00) .
Which marketing model should she invest in, based on these findings, in order to generate predicted higher sales?

Question

Quizplus · Accepted Answer

The model featuring social media marketing as a predictor is the better of the two models because it has a higher adjusted R-squared value, indicating a better fit for the data, and a higher F-statistic with a significant p-value, indicating that the relationship between social media marketing and sales is meaningful. The model featuring print media marketing as a predictor has a much lower adjusted R-squared value and a lower F-statistic with a significant p-value, suggesting that it may not be as effective at predicting sales.

The Head of Retail Sales at a Large Cosmetic Company