Regression Analysis Was Applied Between Sales (In $10,000) and Advertising

question 3

Multiple Choice

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained. = 50 + 8 X Based on the above estimated regression line if advertising is $1,000, then the point estimate for sales (in dollars) is

• A)$8,050
• B)$130
• C)$130,000
• D)$1,300,000

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Definitions:

Extracting Oil

The process of removing crude oil from the earth through drilling or other methods to use as an energy source or in various industrial applications.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas within its layers.

User Cost

The economic cost of using a good or service, including the opportunity cost of not having the good available for future use.

Extraction Cost

The expenses associated with the removal of resources or raw materials from the earth, such as mining, drilling, or quarrying.