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

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Definitions:

Internal Attribution

The process of attributing the cause of one's behavior to personal factors, such as character or effort, rather than to external circumstances.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Casual Social Interactions

Interactions that are informal and not structured, occurring spontaneously between individuals in social settings.

Job Interviews

The process in which potential employees are evaluated by an employer for prospective employment in their company or organization.