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MIDGET EAGLE GROCERY STORES:
THE EFFECT OF NEWSPAPER ADVERTISING ON SALES
Data are available for eleven quarters in four Houston stores: I, II, III, and IV.
X = #ads in local community paper in a given quarter (these ads are at the discretion of the store manager).
Y = monthly sales in $100,000
Store I
Store II
Store III
Store IV
X
Y
10.0
8.04
9.14
7.46
8.0
6.58
6.95
8.14
6.77
5.76
13.0
7.58
8.74
12.74
7.71
9.0
8.81
8.77
7.11
8.84
'11.0
8.33
11.0
9.26
7.81
8.47
14.0
9.96
8.10
7.04
6.0
7.24
6.13
6.08
5.25
4.0
4.26
3.10
5.39
19.0
12.50
12.0
10.84
9.13
8.15
5.56
7.0
4.82
7.26
6.42
7.91
5.0
5.68
4.74
5.73
6.89
Please answer the following questions:
1. What's going on in the stores?
2. What advice do you give the store managers about local newspaper advertising?
3. Is it worth it to advertise? In what stores?
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