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

question 22

Multiple Choice

A regression analysis between sales (in $1000s) and price (in dollars) resulted in the following equation: ? $\hat { y}$ = 50,000 ? 8x
?
The above equation implies that an increase of _____.

• A) $1 in price is associated with a decrease of $8 in sales
• B) $8 in price is associated with an increase of $8,000 in sales
• C) $1 in price is associated with a decrease of $42,000 in sales
• D) $1 in price is associated with a decrease of $8,000 in sales

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Definitions:

Social Perception

The process by which people form impressions and make inferences about other individuals and groups.

Stereotypes

Overgeneralized beliefs about a particular category of people, which can lead to biased attitudes and beliefs about individuals based on their group membership.

Generalizations

Statements or conclusions drawn from specific instances that apply broadly to many situations, often used to simplify and understand complex realities.

Failure-Oriented

An approach or mindset focused on the potential for failure, often leading to risk-averse or cautious behavior.