Answer Happy

Case 17.5 Book sales vs free examination copies C17-05 The academic book business is different from most other businesses because of the way in which purchasing decisions are made. The customer, who is usually a student studying a university or TAFE subject, buys a specific book because the lecturer of the subject adopts (chooses to use that book. Sales representatives of publishers sell their products by persuading lecturers to adopt Their books. Unfortunately, judging the quality of textbooks is not easy. To help with the decision process, soles representatives give free examination copies to lecturers so that they can review The book and decide whether or not to adopt it. In many universities, text book review committees meer to make the adoption decision The senior publishing editor. Mr Geoff Howard, of Cengage Learning Australia was examining the latest data on the sales of recently published textbooks. He noted that the number of examination copies was quite large, which can be a serious problem given the high cost of producing books. The editor wonders whether his sales representatives were giving away too many free books, or perhaps not enough. The data contain the gross revenues from the sales of the books, and the number of free copies for a sample of 30 books. The publishing editor would like to know if there is a direct link between the number of free copies of a book and the gross revenue generated by that book Perform an analysis to provide the publishing editor with the required information