CIS 348 FALL 2024 – MIDTERM EXAM
Extra Credit
BigTech company sells various technology products, including software and hardware. The company wants to understand how its marketing expenses affect sales revenue. Over the past years, they have invested varying amounts in marketing each month. The company’s manager believes that higher marketing expenses may lead to increased sales revenue, but they want to quantify this relationship to make better budgeting decisions. The marketing analyst conducted a regression analysis and the result is below. Please use this regression result to answer the following questions:
1. Identify the dependent and the independent variables in this analysis.
2. How much of the variance in sales revenue is explained by marketing expenses?
3. What is the marketing expenses coefficient? What does this value represent in the relationship between marketing expenses and sales revenue?
4. What is the regression equation based on this analysis?
5. If the company budgets $50,000 in marketing expenses next year, what is expected sales revenue?