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:

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all final goods and services produced within a country's borders in a specific time period.

Economic Well-being

The state of individuals or groups having their basic financial and material needs met, along with access to opportunities for a better quality of life.

Self-sufficiency

The ability to fulfill all of one's needs without reliance on external resources, promoting independence and sustainability in living or economic practices.

Labor Force

The sum of individuals with jobs or actively looking for work in an economy.