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Week 5, DAT 565: DR 2

Week 5, DAT 565: DR 2

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Kenneth Le Cour

Hello Jordan and All:

This discussion is good. Remember that the -25.1682 represents where sales intercepts the y axis. In this case it is saying that even if we spend 0 on advertising we have -25.1682 in sales. If we have negative sales we would be in deep trouble. This would mean we are paying people to take our product or service. This is example the intercept is meaningless because we cannot have negative sales. If we were comparing advertising to costs and we were looking at where advertising intersected with costs we could have negative costs even though we are not spending anything on advertising. Thoughts? Have you had any personal experience with this or can recall a company that may have went through this and is no longer in business? If you worked for a company that had negative sales with zero contributions to advertising, how would you get the company out of the situation?