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

question 42

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 X2 indicates that if television advertising is increased by $1 holding the unit price constant) , sales are expected to

• A) increase by $5
• B) increase by $12,000
• C) increase by $5,000
• D) decrease by $2,000

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