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:

Macroeconomics

The branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

Owner-Occupied Housing

Residential properties that are owned and occupied by the owner, as opposed to being rented out to tenants.

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The total amount of money spent by individuals, firms, or the government on goods and services.