A Regression Analysis Between Sales (In $1,000) and Advertising (In

question 231

Multiple Choice

A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in the following least squares line: .This implies that:

• A) as advertising increases by $1,000, sales increases by $5,000.
• B) as advertising increases by $1,000, sales increases by $80,000.
• C) as advertising increases by $5, sales increases by $80.
• D) None of these choices.

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Definitions:

Fiscal Policy Measures

Government actions involving taxation and spending to influence the economy.

Budget Deficits

A situation where a government's expenditures surpass its revenues within a specific time period, leading to borrowing or debt accumulation.

Discretionary Fiscal Policy

Government strategies involving adjustments in spending levels and tax rates to influence the overall economy, aimed at stabilizing seasonal or cyclical fluctuations.

Unemployment Insurance

A government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.