Regression Analysis Was Applied Between Sales in $1000) and Advertising $\hat { Y }$

question 68

Multiple Choice

Regression analysis was applied between sales in $1000) and advertising in $100) and the following regression function was obtained. = 500 + 4 X
$\hat { Y }$ Based on the above estimated regression line if advertising is $10,000, then the point estimate for sales in dollars) is

• A) $900
• B) $900,000
• C) $40,500
• D) $505,000

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Definitions:

Alternatives

Different options or choices available in a decision-making scenario.

Relevant Cost

A cost that differs between alternatives in a decision. This term is synonymous with avoidable cost and differential cost.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.

Direct Labour

The workforce directly involved in producing goods or delivering services, whose costs are directly attributable to the products or services.