a marketing consultant, sofia, has been studying the effect of increasing advertising spending on product…

a marketing consultant, sofia, has been studying the effect of increasing advertising spending on product sales. sofia conducts several experiments, each time spending less than $1,000 in advertising. when she analyzed the relationship between $x =$ advertising spending and $y =$ product sales, the relationship was linear with $r = 0.90$. her boss is thrilled and asks her to estimate product sales for $100,000 in advertising spending. is it appropriate for her to calculate a predicted amount of product sales with advertising spending of $100,000?\n\n(a) yes, because the association is linear.\n(b) yes, because the association is positive.\n(c) yes, because the association is strong.\n(d) no, because the value of the correlation is not equal to 1.\n(e) no, because $100,000 is much greater than the values used in the experiment.

a marketing consultant, sofia, has been studying the effect of increasing advertising spending on product sales. sofia conducts several experiments, each time spending less than $1,000 in advertising. when she analyzed the relationship between $x =$ advertising spending and $y =$ product sales, the relationship was linear with $r = 0.90$. her boss is thrilled and asks her to estimate product sales for $100,000 in advertising spending. is it appropriate for her to calculate a predicted amount of product sales with advertising spending of $100,000?\n\n(a) yes, because the association is linear.\n(b) yes, because the association is positive.\n(c) yes, because the association is strong.\n(d) no, because the value of the correlation is not equal to 1.\n(e) no, because $100,000 is much greater than the values used in the experiment.

Answer

Brief Explanations:

Sofia's experiments were conducted with advertising spending less than $1,000. Predicting sales for $100,000 in advertising spending is extrapolation as this value is far outside the range of data used to establish the linear relationship. Extrapolation can lead to inaccurate predictions.

Answer:

E. No, because $100,000 is much greater than the values used in the experiment.