Exhibit 14-4 Regression Analysis Was Applied Between Sales Data (Y in $1,000s)

question 130

Multiple Choice

Exhibit 14-4
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
n = 17
SSR = 225
SSE = 75
S_b1 = 0.2683
-Refer to Exhibit 14-4. 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:

Dependent Variable

In an experiment or study, the variable that is tested and measured to see if it is affected by changes in another variable (the independent variable).

Sales Territories

are geographic or demographic regions assigned to salespersons or teams as their specific area of responsibility.

Purchasing Behavior

The process and reasons behind how and why consumers make decisions to buy products or services.

Marketing Research

The systematic gathering, recording, and analyzing of data about issues relating to marketing products and services.