Mobile selling expense

A new mobile company is interested in studying which is the best channel that
allows reaching its customers and producing higher sales. The company is also
interested in forecasting sales based on the advertising budget. The three channels
that the company wants to analyze are TV, Radio and the press. The data related to
the channels are expressed in thousands of euros while sales in thousands of units.

In a first study, only the TV advertising budget is considered to study what is the
effect that this channel produces on the sales of terminals and at the same time to
have an estimate of future sales based on the variable.

Estimate:
1. Model 1: Sales as function of the TV budget

2. Model 2: Sales as function of the TV Radio budget

3. Model 3 Sales as function of TV and Radio budget and the campaign

Exercise

Using the data-set

1) Consider the Data set Advertising, calculate the complete model adding the
effect of the newspaper budget (sales = tv + radio + press)

2) Is the effect of the press ratio significant?

3) How do we interpret this coefficient?

4) Carry out the waste analysis. Is the model good or would it be better to carry out
some transformation?

5) Compare this model with the previous one (sales = tv + radio)? Which one is the
best (R2)?