Activity 1

 Activity I – A manager claims that increases in advertising expenditure will surely raise the firm’s profits, citing his sense that people find the firm’s ads entertaining. 

1. Sketch how you might refute this claim using:

   A theoretical argument
   Data

2. Why might the refutation using data be more convincing?

Activity II – A grocery store manager is interested in the data-generating process for her store’s weekly soda sales. She believes factors impacting these sales include price, product placement, and whether the week contains a holiday. Write out a formal representation of the data-generation process for weekly soda sales that incorporates these and additional factors.

Activity III – Access the dataset Sales and Costs.xlsx (See the attached) and answer the following questions.

1. Calculate these descriptive statistics.

   Mean of sales
   Variance of materials costs
   Covariance of labor costs and materials costs
   Mean of labor costs
   Total sales

2. Calculate at least two more descriptive statistics for this dataset.

2

>Sheet

1 Region Sales Labor Costs Materials Costs 1

$2,0

7

0,

27 9

.00 $

5

9,

3 13

.00 $

25

,

4 8

9.00 2

$2,2

53

,7

58

.00 $

84

,

29

4.00 $

24

,

15

9.00 3

$1,

158

,8

33

.00 $

6

1,

57

0.00 $27,

90

3.00 4

$1,9

16

,

10

7.00 $

75

,

70

4.00 $

26

,9

36

.00 5

$2,

20

9,7

66

.00 $

73

,4

11

.00 $20,

28

2.00 6

$1,

34

4,758.00 $58,0

71

.00 $27,

32

7.00 7

$1,

52

5,2

85

.00 $

63

,

39

1.00 $20,9

48

.00 8

$2,

101

,

50

2.00 $71,

22

8.00 $22,

55

3.00 9

$2,3

43

,8

35

.00 $63,4

38

.00 $26,4

83

.00 10

$1,9

65

,0

95

.00 $

61

,

89

8.00 $

18

,

49

3.00 11

$1,

42

6,

19

4.00 $85,0

93

.00 $28,

69

4.00 12 $2,029,357.00 $

59

,075.00 $27,439.00 13

$9

86

,042.00 $

78

,

97

5.00 $26,713.00 14 $1,901,358.00 $86,003.00 $25,048.00 15

$1,

46

5,8

56

.00 $86,

62

8.00 $27,959.00 16

$1,339,

142

.00 $66,014.00 $20,393.00 17 $1,

200

,863.00 $57,0

88

.00 $20,524.00 18

$1,295,627.00 $

68

,

37

7.00 $26,861.00 19

$8

92

,9

51

.00 $63,295.00 $

23

,8

54

.00 20

$1,7

81

,

45

5.00 $68,708.00 $17,651.00 21 $2,004,7

67

.00 $

72

,

40

6.00 $24,

30

6.00 22

$1,

80

6,366.00 $66,453.00 $25,955.00 23

$1,589,468.00 $73,428.00 $25,

79

3.00 24

$1,

41

7,4

98

.00 $80,573.00 $27,410.00 25

$1,007,695.00 $71,

82

4.00 $27,023.00 26

$2,0

47

,2

87

.00 $58,

91

1.00 $19,5

64

.00 27

$633,691.00 $70,385.00 $18,798.00 28

$1,498,891.00 $78,

44

0.00 $27,471.00 29

$845,502.00 $56,672.00 $28,614.00 30

$1,326,4

77

.00 $85,644.00 $22,815.00 31 $2,269,852.00 $80,518.00 $21,864.00 32

$2,355,777.00 $64,302.00 $17,614.00 33

$537,921.00 $67,073.00 $18,759.00 34

$1,795,804.00 $87,295.00 $22,673.00 35

$1,

135

,573.00 $70,522.00 $24,010.00 36

$1,089,914.00 $73,

215

.00 $22,557.00 37

$2,011,619.00 $78,

151

.00 $28,035.00 38

$2,281,482.00 $85,753.00 $23,273.00 39

$921,1

94

.00 $

76

,725.00 $20,

106

.00 40

$1,691,862.00 $67,

237

.00 $29,091.00 41

$1,268,440.00 $73,632.00 $28,556.00 42

$1,569,321.00 $80,347.00 $20,

155

.00 43

$823,068.00 $80,

167

.00 $19,767.00 44

$1,524,685.00 $75,288.00 $26,404.00 45

$1,908,

126

.00 $63,282.00 $25,759.00 46

$1,566,024.00 $69,

96

8.00 $22,545.00 47

$1,619,888.00 $83,

180

.00 $28,056.00 48

$808,591.00 $68,919.00 $23,

179

.00 49

$1,040,

239

.00 $67,078.00 $19,

99

7.00 50

$997,462.00 $75,289.00 $29,025.00 51

$801,630.00 $68,497.00 $18,

74

0.00 52

$1,886,438.00 $67,

231

.00 $27,850.00 53

$864,289.00 $83,353.00 $21,987.00 54

$544,624.00 $81,315.00 $27,823.00 55

$1,287,403.00 $87,633.00 $22,756.00 56

$890,054.00 $56,083.00 $20,547.00 57

$2,239,090.00 $86,

178

.00 $27,994.00 58

$2,262,311.00 $57,910.00 $24,894.00 59

$1,080,

190

.00 $87,059.00 $24,367.00 60 $2,

147

,915.00 $80,572.00 $25,795.00 61

$2,396,990.00 $80,957.00 $19,901.00 62

$1,417,255.00 $58,839.00 $27,052.00 63

$1,

157

,278.00 $69,583.00 $28,822.00 64

$1,

134

,178.00 $80,016.00 $29,467.00 65

$2,345,258.00 $73,865.00 $19,903.00 66

$1,672,436.00 $81,601.00 $26,807.00 67

$2,345,

143

.00 $63,813.00 $18,

103

.00 68

$2,261,

119

.00 $76,714.00 $26,727.00 69

$1,866,284.00 $81,

186

.00 $25,151.00 70

$1,580,449.00 $73,410.00 $25,915.00 71

$646,655.00 $75,838.00 $26,430.00 72

$1,056,578.00 $74,259.00 $28,569.00 73

$1,732,073.00 $70,017.00 $22,004.00 74

$2,101,072.00 $87,546.00 $17,993.00 75

$718,

115

.00 $57,482.00 $22,655.00 76

$1,976,968.00 $77,448.00 $24,843.00 77

$2,021,155.00 $81,244.00 $24,262.00 78

$920,032.00 $68,843.00 $28,814.00 79

$1,

176

,260.00 $83,347.00 $19,435.00 80

$1,795,298.00 $84,689.00

$21,987.00
81

$1,

238

,913.00 $76,721.00 $22,590.00 82

$1,

193

,492.00 $73,115.00 $28,932.00 83

$1,917,295.00 $84,008.00 $21,393.00 84

$1,917,

107

.00 $63,529.00 $22,760.00 85

$1,

111

,683.00 $75,823.00 $20,284.00 86

$2,358,103.00 $62,489.00 $24,670.00 87

$1,512,

228

.00 $78,675.00 $22,574.00 88

$2,365,887.00 $77,698.00 $22,541.00 89

$1,

220

,

109

.00 $69,343.00 $18,787.00 90

$1,582,269.00 $87,323.00 $20,135.00 91

$1,694,

185

.00 $59,479.00 $23,

110

.00 92

$1,

172

,850.00 $56,737.00 $21,527.00 93

$719,072.00 $88,180.00 $21,478.00 94

$761,940.00 $70,907.00 $29,386.00 95

$654,623.00 $65,953.00 $19,344.00 96

$1,754,492.00 $63,005.00 $19,231.00 97

$2,

100

,389.00 $73,282.00 $20,066.00 98

$2,

112

,363.00 $72,606.00 $24,597.00 99

$1,900,468.00 $76,151.00 $23,548.00 100

$927,771.00 $85,190.00 $26,457.00 101

$1,335,

138

.00 $64,275.00 $24,610.00 102 $1,021,

173

.00 $77,647.00 $19,816.00 103

$1,

146

,799.00 $73,662.00 $24,943.00 104 $2,066,518.00 $57,254.00 $17,847.00 105 $1,932,

132

.00 $75,716.00 $23,913.00 106

$919,282.00 $82,506.00 $29,471.00 107

$2,

141

,066.00 $75,596.00 $27,372.00 108 $599,061.00 $62,359.00 $24,

159

.00 109

$1,411,500.00 $61,

139

.00 $26,711.00 110

$2,389,813.00 $72,706.00 $18,468.00 111

$2,377,562.00 $78,447.00 $27,798.00 112

$535,614.00 $76,687.00 $21,539.00 113 $2,147,780.00 $58,931.00 $29,267.00 114 $2,

137

,903.00 $57,422.00 $28,743.00 115

$1,

230

,437.00 $73,808.00 $29,

166

.00 116 $995,

140

.00 $62,

161

.00 $17,868.00 117 $1,387,932.00 $69,869.00 $26,738.00 118 $550,332.00 $86,126.00 $22,865.00 119

$653,114.00 $74,309.00 $26,982.00 120 $1,610,589.00 $85,271.00 $26,716.00 121 $1,459,722.00 $69,595.00 $22,494.00 122 $1,051,652.00 $87,409.00 $26,092.00 123 $941,630.00 $68,080.00 $27,530.00 124 $1,254,743.00 $59,737.00 $18,836.00 125 $1,

218

,564.00 $64,344.00 $20,925.00 126

$1,

203

,395.00 $59,

236

.00 $25,071.00 127 $550,

153

.00 $56,

128

.00 $23,266.00 128

$586,

207

.00 $72,952.00 $23,341.00 129 $2,128,845.00 $72,

209

.00 $28,773.00 130 $2,193,410.00 $84,652.00 $20,450.00 131 $533,

211

.00 $65,444.00 $20,040.00 132

$1,499,001.00 $85,

194

.00 $23,602.00 133 $1,

232

,044.00 $59,434.00 $19,998.00 134

$1,173,982.00 $83,325.00 $21,826.00 135

$1,735,

144

.00 $80,895.00 $22,102.00 136 $1,824,943.00 $60,482.00 $20,

154

.00 137

$1,943,972.00 $75,832.00 $26,613.00 138

$1,783,

202

.00 $70,814.00 $28,130.00 139

$615,007.00 $72,724.00 $28,755.00 140

$1,073,409.00 $73,356.00 $24,640.00 141

$1,324,584.00 $56,036.00 $28,007.00 142

$1,572,545.00 $59,405.00 $27,291.00 143

$2,142,207.00 $83,025.00 $27,538.00 144

$1,322,803.00 $82,618.00 $28,963.00 145 $955,

162

.00 $69,877.00 $20,

216

.00 146

$1,

204

,299.00 $69,888.00 $23,943.00 147

$1,247,238.00 $83,553.00 $22,312.00 148 $668,568.00 $71,330.00 $19,654.00 149 $901,037.00 $68,961.00 $25,080.00 150 $1,470,753.00 $60,016.00 $22,154.00 151

$2,

241

,978.00 $76,705.00 $17,901.00 152 $999,515.00 $59,058.00 $20,996.00 153

$2,281,842.00 $75,257.00 $23,574.00 154

$1,633,531.00 $77,013.00 $23,619.00 155

$1,193,062.00 $69,

213

.00 $25,855.00 156 $2,

191

,119.00 $81,676.00 $23,635.00 157

$1,030,840.00 $70,962.00 $19,786.00 158

$1,135,681.00 $80,343.00 $23,138.00 159

$2,300,149.00 $88,624.00 $22,954.00 160 $996,367.00 $59,992.00 $18,193.00 161

$1,950,032.00 $72,645.00 $22,088.00 162

$1,902,193.00 $70,097.00 $18,435.00 163 $1,943,646.00 $60,325.00 $27,499.00 164 $656,331.00

$73,410.00

$24,471.00 165 $1,407,348.00 $78,931.00 $22,677.00 166

$2,145,281.00 $88,810.00 $19,953.00 167

$1,771,726.00 $59,593.00 $25,434.00 168 $2,249,655.00 $69,797.00 $28,933.00 169 $1,133,698.00 $70,742.00 $18,

208

.00 170 $1,373,116.00 $76,342.00 $24,072.00 171 $1,606,126.00 $68,633.00 $22,686.00 172

$687,442.00 $70,880.00 $23,726.00 173

$2,207,122.00 $85,731.00 $22,326.00 174 $2,111,579.00 $64,977.00 $22,572.00 175 $1,596,675.00 $85,872.00 $21,387.00 176

$2,123,277.00 $58,092.00 $23,115.00 177 $2,389,076.00 $80,723.00 $27,666.00 178

$1,870,329.00 $59,693.00 $25,

212

.00 179

$1,154,544.00 $66,204.00 $21,491.00 180

$1,143,138.00 $74,878.00 $22,836.00 181 $1,294,604.00 $88,236.00 $26,604.00 182 $1,966,778.00 $70,841.00 $24,158.00 183 $515,820.00 $87,052.00 $28,152.00 184 $2,

223

,939.00 $76,689.00 $23,061.00 185

$1,956,787.00 $57,714.00 $19,884.00 186

$1,

188

,708.00 $64,546.00 $24,425.00 187 $1,597,823.00 $81,454.00 $27,510.00 188

$1,360,436.00 $81,669.00 $21,335.00 189 $519,655.00 $74,236.00 $17,838.00 190

$651,626.00 $57,153.00 $18,357.00 191

$1,063,954.00 $75,651.00 $18,936.00 192 $1,423,040.00 $84,311.00 $26,813.00 193

$645,388.00 $81,524.00 $24,561.00 194

$1,283,879.00 $85,012.00 $27,877.00 195 $2,049,640.00 $72,002.00 $21,578.00 196 $2,412,435.00 $78,743.00 $21,039.00 197 $887,789.00 $56,150.00 $18,591.00 198 $2,290,641.00 $63,763.00 $20,787.00 199 $1,590,895.00 $84,386.00 $22,510.00 200

$2,361,150.00 $68,802.00 $19,429.00 201 $2,142,241.00 $64,416.00 $24,386.00 202

$2,018,946.00 $72,

226

.00 $21,395.00 203

$1,426,128.00 $56,606.00 $23,506.00 204

$2,307,175.00 $69,290.00 $23,132.00 205 $2,359,559.00 $56,410.00 $28,282.00 206 $821,665.00 $74,653.00 $17,632.00 207

$1,866,668.00 $59,957.00 $26,226.00 208

$604,250.00 $76,469.00 $28,895.00 209

$1,969,455.00 $62,555.00 $25,287.00 210 $2,284,304.00 $58,962.00 $18,274.00 211

$851,326.00 $78,286.00 $22,293.00 212

$804,827.00 $78,756.00 $21,863.00 213

$703,472.00 $71,453.00 $28,461.00 214 $732,869.00 $60,495.00 $25,047.00 215

$1,532,699.00 $69,098.00 $20,994.00 216

$1,001,095.00 $81,025.00 $25,177.00 217 $2,017,591.00 $83,820.00 $23,090.00 218

$1,395,371.00 $83,098.00 $26,715.00 219 $880,326.00 $68,715.00 $18,865.00 220

$1,525,176.00 $78,973.00 $26,175.00 221 $1,428,854.00 $83,654.00 $22,420.00 222 $1,319,132.00 $56,985.00 $25,476.00 223

$515,776.00 $79,818.00 $23,892.00 224 $2,123,854.00 $63,507.00 $23,303.00 225 $2,010,794.00 $78,581.00 $20,786.00 226

$990,785.00 $63,971.00 $17,590.00 227 $603,132.00 $87,000.00 $25,750.00 228

$1,550,614.00 $87,257.00 $17,557.00 229 $1,360,328.00 $60,054.00 $28,009.00 230

$2,406,056.00 $85,079.00 $27,580.00 231

$1,375,610.00 $82,593.00 $24,851.00 232

$1,819,798.00 $73,386.00 $27,438.00 233 $1,150,208.00 $62,494.00 $20,810.00 234 $1,052,096.00 $64,618.00 $21,318.00 235 $689,215.00 $84,406.00 $22,988.00 236

$628,382.00 $77,514.00 $22,015.00 237

$1,319,461.00 $61,778.00 $17,641.00 238

$2,172,774.00 $66,558.00 $19,540.00 239

$1,531,918.00 $82,419.00 $29,276.00 240 $1,993,862.00 $58,677.00 $28,344.00 241

$958,446.00 $56,712.00 $28,564.00

Sheet2

Sheet3