A Regression Model Between Sales (Y in $1000), Unit Price

question 58

Multiple Choice

A regression model between sales (y in $1000) , unit price (x₁ in dollars) , and television advertisement (x₂ in dollars) resulted in the following function: ​ = 8 - 4x₁ + 5x₂
​
For this model, SSR = 3500, SSE = 1500, and the sample size is 20. The coefficient of x₂ indicates that if television advertisement is increased by $1 (holding the unit price constant) , sales are expected to

• A) increase by $5.
• B) increase by $20,000.
• C) increase by $5000.
• D) decrease by $4000.

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Definitions:

Primitive Behaviour

Refers to actions or reactions considered to be based on instinctual drives or early human development, sometimes seen as less sophisticated or unlearned.

Emergent Norm Theory

A theory that suggests norms or behavioral expectations develop spontaneously within a group in response to situational cues and contexts.

Idiosyncratic

Pertaining to traits or characteristics that are unique to an individual, often diverging from the norm or general expectations.

Productive

Referring to the ability to produce significant amounts of output, work, or results efficiently.