A Regression Analysis Between Sales (In $1000) and Price (In

question 118

Multiple Choice

A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation: ​ = 40 - 6x
​
The above equation implies that an

• A) increase of $1 in price is associated with a decrease of $6 in sales.
• B) increase of $8 in price is associated with a decrease of $24,000 in sales.
• C) increase of $1 in price is associated with a decrease of $240 in sales.
• D) increase of $1 in price is associated with a decrease of $6000 in sales.

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Definitions:

Direct Marketing

A form of advertising where companies communicate directly with the consumer through mail, email, texts, and other marketing materials without the use of intermediaries.

Personal Selling

A direct form of selling where salespersons use tailored communication to persuade potential buyers to purchase products or services.

Interactive Communication

A form of communication where there is active participation and exchange between all parties involved, allowing for immediate feedback and adaptation of message.

Publicity

The public visibility or awareness of a product, service, person, or organization achieved through media coverage or promotional activities, often without direct payment.