Exhibit 12-4
Regression Analysis Was Applied Between Sales Data Y $\hat { Y }$

question 34

Multiple Choice

Exhibit 12-4
Regression analysis was applied between sales data Y in $1,000s) and advertising data x in $100s) and the following information was obtained.
= 12 + 1.8 x
$\hat { Y }$ n = 17
SSR = 225
SSE = 75
Sb₁ = 0.2683
-Refer to Exhibit 12-4. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales in dollars) is

• A) $66,000
• B) $5,412
• C) $66
• D) $17,400

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Definitions:

Realized

Refers to profits or losses that have been made official by a transaction or event, distinguishing them from unrealized or paper profits or losses.

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governing state or the functional equivalent of a state.

Forward Contracts

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.

Specified Limit

A predefined restriction or boundary that determines the maximum or minimum value that an action or decision may reach.