Math 439 F20 Case Study 1

 

Download the dataset case study one data.csv from Titanium.  In this dataset you will find financial marketing data on 268 start-up companies working in the tech sector.

 

The variables within this dataset are spend and revenue.  Spend contains the amount of capital resources that were spent initially on over the first year of each company.  Revenue quantifies the amount of revenue generated during the first year of the company.  For those of you who don’t know, profit is defined as revenue – spend.  Let’s not worry about taxes, apparently nobody does anyway.

 

You have been hired by a new tech start-up who is interested in advertising.  Specifically they have the following asks:

 

  1. What is the relationship between advertising spend and revenue within the first year of a start-up.
  2. Currently the company is debating between spending $500,000 and $700,000 on advertising, please provide guidance.

 

Please analyze the data and provide relevant output that addresses each of your employers asks.

 

If you need any clarity on the data feel free to ask Dr. Nichols.


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