A Regression Analysis Between Sales (In $1000) and Price (In $\hat { y }$

question 76

Multiple Choice

A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation: $\hat { y }$ = 60 - 8x

The above equation implies that an

• A) increase of $1 in price is associated with a decrease of $8 in sales.
• B) increase of $8 in price is associated with a decrease of $52,000 in sales.
• C) increase of $1 in price is associated with a decrease of $52 in sales.
• D) increase of $1 in price is associated with a decrease of $8000 in sales.

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Definitions:

Hindsight Bias

The inclination to think, following an event, that one could have foreseen or anticipated the result, commonly called the "I-knew-it-all-along" effect.

Spontaneous Recovery

The reappearance of a conditioned response after a period of apparent extinction or reduction.

Repressed Memories

Remembrances that have been involuntarily repressed, connected to severe stress or distressing experiences.

Dissociation

A psychological condition wherein a person experiences a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.