Regression Analysis Was Applied Between Sales (In $10,000) and Advertising

question 113

Multiple Choice

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained. ​ = 50 + 8x
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Based on the above estimated regression line, if advertising is $1000, then the point estimate for sales (in dollars) is

• A) $8050.
• B) $130.
• C) $130,000.
• D) $1,300,000.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Supply Conditions

Factors that affect the ability and willingness of producers to offer goods and services for sale, including technology, resource prices, and regulatory environment.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied, with a positive slope indicating that higher prices will lead to higher quantities supplied.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to market stability.