### Positive relationship between advertising and demand

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##### Reference no: EM134393

Advertising: For this variable each student must fill in the table with whatever random values each student wants. However, remember that we expect to have a positive relationship between Advertising and Demand.

This means that if Qx given in the above table has increased in a given year, your value for Advertising must also increase."

Please fill in the data for Advertising with any random 3-digit values you want without tracking Qx.

Do not look at Qx when doing this. Just fill in the Advertising values randomly. The reason for this is that some of you who have followed the advice to increase Advertising when Qx increases (and to reduce it when Qx falls) found some odd results (with very small coefficients).

This is because the values used for Advertising affect all the results.

In summary, please fill in the Advertising column with completely random 3-digit values without tracking what happened to Qx.

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