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

question 34

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 the unit price indicates that if the unit price is

• A) increased by $1 (holding advertisement constant), sales are expected to increase by $4.
• B) decreased by $1 (holding advertisement constant), sales are expected to decrease by $4.
• C) increased by $1 (holding advertisement constant), sales are expected to increase by $4000.
• D) increased by $1 (holding advertisement constant), sales are expected to decrease by $4000.

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Definitions:

Scale Values

Scale values refer to the numerical or categorical measurements assigned to variables or responses for the purpose of quantitative analysis.

Standard Deviation

A computed measure of how much scores vary around the mean score.

Two-factor Theory

A psychological theory proposing that emotions are the result of both physiological arousal and cognitive labeling of that arousal.

Romantic Greeting Card

A printed card which expresses affection, love, or other romantic emotions, often exchanged on special occasions like Valentine's Day or anniversaries to convey personal sentiments.