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Multiple regression analysis is often used to relate a dependent variable (e.g., CoffeeTime’s weekly revenue) with several independent variables (e.g., CoffeeTime’s and Quick Brew’s advertising expenditures and CoffeeTime’s price index) (Lind, et al., 2005).
CoffeeTime has hired a media marketing firm to acquire Quick Brew’s advertising expenditures each week (UOP, 2007). CoffeeTime also monitors its price index which indicates the customer’s effective price (UOP, 2007). The price index is affected by inflation, seasonal coffee availability, and in-store promotions. Inflation and availability increase the index, while promotions decrease the index (UOP, 2007)...
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