A Regression Analysis of Company Profits and the Amount of Money

question 41

Multiple Choice

A regression analysis of company profits and the amount of money the company spent on advertising found $r^{2}=0.72$ . Which of these is true?
I. The model can correctly predict the profit for 72% of companies.
II. On average, about 72% of a company's profit results from advertising. III. On average, companies spend about 72% of their profits on advertising.

• A) II only
• B) none
• C) I and III
• D) I only
• E) III only

Understand the importance of SMART objectives in sales calls.

Comprehend how sales demonstrations can effectively move prospects through the mental steps towards purchase.

Understand the role of a salesperson in developing and maintaining customer relationships.

Grasp the concept of creative problem solving in sales and its impact on customer satisfaction.

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Definitions:

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.

Par Common Stock

The nominal or face value assigned to common shares in the articles of incorporation, often having little relation to the market value.

Preferred Stock

represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

Earnings Per Share

A financial ratio that measures the amount of profit attributed to each outstanding share of common stock, indicating a company's profitability on a per-share basis.