Year 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979...

b. What is the marginal impact of advertising on sales if advertising is increased from $1500 to $1600? What is the marginal impact on sales if advertising is increased from $2400 to $2500? Please comment on any differences.

c. Is there a lead/lag relationship between Advertising and Sales? That is, estimate this model ...

Sales t = β0 + β1*advertising t + β2*advertising t2 + β3*advertising t-1 What is your conclusion? Give reason.