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?\na yes, because the association is linear.\nb yes, because the association is positive.\nc yes, because the association is strong.\nd no, because the value of the correlation is not equal to 1.\ne 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?\na yes, because the association is linear.\nb yes, because the association is positive.\nc yes, because the association is strong.\nd no, because the value of the correlation is not equal to 1.\ne no, because $100,000 is much greater than the values used in the experiment.

Answer

Brief Explanations:

The linear relationship was established based on advertising - spending less than $1,000. Predicting for $100,000 which is far outside the range of the data used to find the relationship is extrapolation and may not be valid.

Answer:

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