dolution

 Interpretation of Regression Results Brodie Company’s advertising manager wants to know whether the company’s advertising program is successful. The manager used a spread sheet program to estimate the relation between advertising expenditures (the independent variable) and sales dollars. Monthly data for the past two years were entered into the program. The regression results indicated the following relation:  Sales dollars  $169,000  ($200  Advertising expenditures) Correlation coefficient  .864   these results seemed to imply that advertising was reducing sales. The manager was about to  conclude that statistical methods were so much nonsense when you walked into the room.

Required

 Help the manager. What might cause the negative relationship between advertising expenditures and sales?