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:

Resource Management

The efficient and effective deployment and allocation of an organization's resources when and where they are needed.

Resource Dilemmas

Situations in which individuals or groups face decisions about how to share, distribute, or use limited resources.

Tragedy of the Commons

A situation in which individuals acting independently and rationally according to their own self-interest behave contrary to the best interests of the whole group by depleting or spoiling shared resources.

Pollutants

Substances that cause pollution, having harmful effects on the environment and living organisms.