Exhibit 15-2 A Regression Model Between Sales (Y in $1,000), Unit Price

question 10

Multiple Choice

Exhibit 15-2
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: For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. 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:

Fixed-Effects ANOVA

A statistical method used to analyze the differences among group means in a sample where the groups are defined by some fixed factor.

Random-Effects ANOVA

A statistical method that accounts for variability within and across groups when analyzing differences among multiple groups.

Multifactor Experiment

A multifactor experiment is an investigative process in research that involves the manipulation of multiple variables to determine their effect on the subject of interest.

SSE

Sum of Squares due to Error; a measure used in statistics that quantifies the variance in an observed variable not explained by the predictive model.