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
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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:

Principal Repaid

The amount of the original loan paid back, excluding interest or additional fees.

17th Monthly Payment

Refers to the seventeenth installment in a series of scheduled payments, typically within a loan or mortgage plan.

Compounded Monthly

This refers to the process of adding interest to the principal balance of a loan or investment on a monthly basis.

Amortized

The gradual reduction of a debt over a period of time by making regular payments of interest and principal.