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Q. Hawkeye Pierce, Inc., finds in a simple regression analysis which demand increases with an increase in advertising also falls as advertising expenditures are reduced. Similarly, a simple regression analysis of product demand also price reveals which demand increases with a decrease in average price also falls as prices are raised. Coefficient estimates for each independent variable are statistically significant, as is the level of overall explanation achieved, as revealed by the coefficient of determination (R2). Explain however, when both advertising also price are Comprised as independent variables in a multiple regression model, neither variable has a statistically significant coefficient estimate.
Advertising is powerfull strategy to make people aware about company products and services and for this case is to emphasize reliability and low price, this effort will help the company to sustain in this area and to develop a customer franchise a..
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