Legal advertising—does it pay? According to the American Bar Association, there are over one million lawyers competing for your business. To gain a competitive edge, these lawyers are aggressively advertising their services. In fact, Erickson Marketing, Inc., reports that “attorneys are the #1 category of advertising in the Yellow Pages.” Does legal advertising really pay? To partially answer this question, consider the case of an actual law firm that specializes in personal injury (PI) cases. The firm spends thousands of dollars each month on advertising. The accompanying table shows the firm’s new personal injury cases each month over a 42-month period. Also shown is the total expenditure on advertising each month, and over the previous 6 months. These data are saved in the LEGALADV file. Do these data provide support for the hypothesis that increased advertising expenditures are associated with more personal injury cases? Conduct a complete simple linear regression analysis of the data, letting y = new PI cases and x = 6-month cumulative advertising expenditure . Summarize your findings in a professional report.
Month | New PI Cases | 6 Months Cumulative Adv. Exp. |
7 | 11 | $41,632.74 |
8 | 7 | $38,227.39 |
9 | 13 | $39,779.77 |
10 | 7 | $37,490.22 |
11 | 9 | $52,225.71 |
12 | 8 | $56,249.15 |
13 | 18 | $59,938.03 |
14 | 9 | $65,250.59 |
15 | 25 | $66,071.85 |
16 | 26 | $81,765.94 |
17 | 27 | $66,895.46 |
18 | 12 | $71,426.16 |
19 | 14 | $75,346.40 |
20 | 5 | $81,589.97 |
21 | 22 | $78,828.68 |
22 | 15 | $78,415.73 |
23 | 12 | $90,802.77 |
24 | 18 | $95,689.44 |
25 | 20 | $83,099.55 |
26 | 38 | $82,703.75 |
27 | 13 | $90,484.38 |
28 | 18 | $102,084.54 |
29 | 21 | $84,976.99 |
30 | 7 | $95,314.29 |
31 | 16 | $115,858.28 |
32 | 12 | $108,557.00 |
33 | 15 | $127,693.57 |
34 | 18 | $122,761.67 |
35 | 30 | $123,545.67 |
36 | 12 | $119,388.26 |
37 | 30 | $134,675.68 |
38 | 20 | $133,812.93 |
39 | 19 | $142,417.13 |
40 | 29 | $149,956.61 |
41 | 58 | $165,204.46 |
42 | 42 | $156,725.72 |
43 | 24 | $146,397.56 |
44 | 47 | $197,792.64 |
45 | 24 | $198,460.28 |
46 | 14 | $206,662.87 |
47 | 31 | $253,09.27 |
48 | 26 | $249,496.28 |
Source: Info Tech, Inc., Gainesville, Florida.
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