Regression Analysis Was Applied Between Sales Y in $1,000) and Advertising

question 47

Multiple Choice

Regression analysis was applied between sales Y in $1,000) and advertising X in $100) , and the following estimated regression equation was obtained. $\hat { Y }$ = 80 + 6.2 X
Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales in dollars) is

• A) $62,080
• B) $142,000
• C) $700
• D) $700,000

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Definitions:

Niche Category

A specialized segment of the market for a particular kind of product or service.

Hybrid Strategy

A competitive business strategy that combines elements of cost leadership and differentiation strategies, aiming to provide high value at a lower cost.

Customer Focus

A business orientation that prioritizes the needs and requirements of customers in product development and service delivery.

Cost Leadership

A strategy where a company aims to become the lowest cost producer in the industry to gain competitive advantage.