Exhibit 13-2
a Regression Model Between Sales Y in $1,000) $\hat { Y }$

question 97

Multiple Choice

Exhibit 13-2
A regression model between sales Y in $1,000) , unit price X1 in dollars) and television advertisement X2 in dollars) resulted in the following function:
$\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of the unit price indicates that if the unit price is

• A) increased by $1 holding advertising constant), sales are expected to increase by $3
• B) decreased by $1 holding advertising constant), sales are expected to decrease by $3
• C) increased by $1 holding advertising constant), sales are expected to increase by $4,000
• D) increased by $1 holding advertising constant), sales are expected to decrease by $3,000

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Definitions:

Defense Mechanisms

Psychological strategies brought into play by individuals to cope with reality and to maintain self-image.

Displacement

In psychoanalytic theory, a defense mechanism where an individual redirects emotional impulses from a real object to a substitute object.

Reaction Formation

A defense mechanism where an individual unconsciously replaces an unacceptable or threatening impulse with its opposite.

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and the uniqueness of individual experience and potential.