A Regression Analysis Between Sales (Y in $1000) and Advertising

question 127

Multiple Choice

A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: ​ = 30,000 + 5x
​
The above equation implies that an

• A) increase of $4 in advertising is associated with an increase of $5000 in sales.
• B) increase of $1 in advertising is associated with an increase of $5 in sales.
• C) increase of $1 in advertising is associated with an increase of $34,000 in sales.
• D) increase of $1 in advertising is associated with an increase of $5000 in sales.

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Definitions:

Ideological Reasoning

Thinking that is heavily influenced by a set system of beliefs or ideals.

Legal Principle

Fundamental guideline or established norm accepted within a legal system as a basis for decision-making.

Ideological Reasoning

The process of forming judgments and decision-making based on a set of beliefs or ideologies.