A Regression Analysis Between Demand (Y in 1000 Units) and Price

question 31

Multiple Choice

A regression analysis between demand (y in 1000 units) and price (x in dollars) resulted in the following equation: ? $\hat {y }$ = 9 ? 3x
?
The above equation implies that if the price is increased by $1, the demand is expected to _____.

• A) increase by 6 units
• B) decrease by 3 units
• C) decrease by 6,000 units
• D) decrease by 3,000 units

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Definitions:

Time-Driven

An approach that bases analysis, activities, or costing on the amount of time required to complete certain tasks or processes.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their consumption of resources.

Preparing Deliveries

The process involved in getting goods ready for shipment to customers, including packaging, labeling, and coordinating logistics.

Time-Driven

Refers to actions or processes that are triggered or scheduled based on specific time conditions.