Explain what is reverse causality

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Marketing

1. Suppose we analyze the relationship between advertising spending (X) and sales (Y) of 100 companies and find a negative co-variation between ad spend and sales. Can we conclude that advertising decreases sales?

2. Explain what is reverse causality. Find or develop a case (or an example) of possible reverse causality. Explain why it is subject to reverse causality.

3. Suppose a company wants to know the effectiveness of a brochure that explains a credit union program – whether the brochure increases awareness and understanding of the credit union among employees. Develop an experiment in a two-group before-after design. Explain how the experiment eliminates history effects.

Reference no: EM132222221

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