Scenario 2 A manager is trying to understand the relationship between the amount of money spent advertising a product (in thousands of dollars) and

Scenario 2

A manager is trying to understand the relationship between the amount of money spent advertising a product (in thousands of dollars) and sales (in millions of dollars) using data for 8 months. The manager runs a regression model and obtains the following output. Notice that both sales and advertising are log-transformed.

Regression results for Log(Sales)

Summary measures

R-Square

0.9984

Adj R-Square

0.9981

Regression coefficients

Coefficient