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If the correlation between advertising and sales is 20% this mean that:

A- every1 dollar paid from sales result in ( ,2 cents ) from advertising 

B- every5 dollar paid from advertising result in1 dollar of sales 

C- this relation is strong 

D- this relation is suitable for regression analysis 

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/20
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option D- this relation is suitable for regression analysis.

[In the given example--the presence of advertisement increase the sales by around20% better than the absence of it]

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer B is the correct answer 

answer A is incorrect because it is assume that advertising is dependent variable

Answer C  is incorrect because this represent  positive weak relation

Answer D is incorrect because regression analysis using when relation is strong

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Answer B is correct because it is assume that the change in advertising

( independent variable ) tend to change in sales ( dependent variable )

 

Samsheer ck samsheer
by Samsheer ck samsheer , Accounts Manager , Al madina group

every5 dollar paid from advertising result in1 dollar of sales

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

A_.                     

Every1 $ of sales resulted form0.2 $ of advertising 

Attention is a necessary ingredient for effective advertising. The market for consumer attention (or “eyeballs”) has become so competitive that attention can be regarded as a currency. The rising cost of this ingredient in the marketplace is causing marketers to waste money on costly attention sources or reduce their investment in promoting their brands. Instead, they should be thinking about how to “buy” cheaper attention and how to use it more effectively

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

Answer (A) is correct. more advertising for more sales.

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