DOES ADVERTISING AFFECT SALES ? Answer Question with Graph and chart

MIDGET EAGLE GROCERY STORES: THE EFFECT OF NEWSPAPER ADVERTISING ON SALES

Data are available for eleven quarters in four Houston stores: I, II, III, and IV. X = #ads in local community paper in a given quarter (these ads are at the discretion of the store manager). Y = monthly sales in $100,000

Store I Store II Store III Store IV

X Y X Y X Y X Y

10.0 8.04 10.0 9.14 10.0 7.46 8.0 6.58

8.0 6.95 8.0 8.14 8.0 6.77 8.0 5.76

13.0 7.58 13.0 8.74 13.0 12.74 8.0 7.71

9.0 8.81 9.0 8.77 9.0 7.11 8.0 8.84

`11.0 8.33 11.0 9.26 11.0 7.81 8.0 8.47

14.0 9.96 14.0 8.10 14.0 8.84 8.0 7.04

6.0 7.24 6.0 6.13 6.0 6.08 8.0 5.25

4.0 4.26 4.0 3.10 4.0 5.39 19.0 12.50

12.0 10.84 12.0 9.13 12.0 8.15 8.0 5.56

7.0 4.82 7.0 7.26 7.0 6.42 8.0 7.91

5.0 5.68 5.0 4.74 5.0 5.73 8.0 6.89

Please answer the following questions: 1. What’s going on in the stores? 2. What advice do you give the store managers about local newspaper advertising? 3. Is it worth it to advertise? In what stores?