Reference no: EM132361909

Kohl's wishes to investigate the relationship between level of advertising, coupon value and sales. Kohl's advertises several times a month and includes a coupon (in dollars) with each advertisement. The value of the coupon remains the same in a month but varies from month to month. Kohl's expects that the number advertisements and coupon value have a positive impact on sales. In addition, Kohl's expects that the impact of advertisements increases as the coupon value increases. Kohl's collects the sales (in thousands of dollars), number of ads and coupon value for the last one year. The data is in Kohls.sav. Express the model that the company must use, state the null and alternate hypothesis, estimate the model and provide interpretation. When the manufacturer advertises 5 times in a month and includes a $3 coupon, what is the expected sales?

Sales Ads Coupon Value

110.54 3 4

209.83 13 2

256.74 13 3

157.86 13 1

174.32 8 3

208.69 13 4

178.57 15 1

89.34 3 3

71.58 3 2

295.77 15 3

100.65 8 1

239.03 15 2