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How much does advertising impact market penetration? To assess the impact of advertising in the tobacco industry, a study looked at theamount of money spent on advertising a particular brand of cigarettes and brand preference among adolescents and adults. The data are shown below: (Source: Center for Disease Control Website).Brand Advertising ($ millions) % Adolescents % AdultsMarlboro 75 60 23.5Camel 43 13.3 6.7Newport 35 12.7 4.8Kool 21 1.2 3.9Winston 17 1.2 3.9Benson & Hedges 4 1 3Salem 3 0.3 2.5a) Explore the possibility of a linear relation between advertising and brand preference for adults and for adolescent separately. Do there seem to be strong linear relationships, base on a scatter plot and the correlation?
b) Build linear models to represent the relation between advertising and brand preference for these two groups. What preferences would the models predict for advertising of $60 million?
c) Build nonlinear models to represent the relation between advertising and brand preference for these two groups, using the power function y = axB? what preference would the model predict for advertising of $60 million? What are the advantages and disadvantages of a nonlinear model for this relationship?
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Sclove speaks about “technologies as social structures.” In what ways do technologies become social structures? To what extent is the interlacing of society and technology leading to negative consequences and to what extent might it cause good things..
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