Corporate Expenses on Marketing and Promotions
BA/EC 311 – QUANTITATIVE ANALYSIS
BIRMINGHAM-SOUTHERN COLLEGE
Corporate Expenses on Marketing and Promotions
You are the Vice President of Marketing for a Fortune 100 company. Your marketing department spends millions of dollars entertaining customers in hopes of increasing sales orders. You are interested in knowing how effective these expenditures have been.
You have requested the following data (which are in the Excel file below):
- EVTNUM – The event number.
- ORDERS – Dollar value of new orders following an entertainment event.
- NFL – Dollars spent entertaining prospective customers at NFL games.
- NASCAR – Dollars spent entertaining prospective customers at NASCAR races.
- FISH – Dollars spent entertaining prospective customers on deep sea fishing trips.
Provide your regression equation. Don't forget to test for multicollinearity! Write a report that summarizes your findings.
What is the predicted dollar value of new orders if the
average amount is spent entertaining customers at all three events? You’ll need
to calculate the descriptive statistics to answer this.
At which type of event should you focus your marketing
efforts? Why?