Regression Analysis Was Applied Between Sales Data (Y in $1000s)

question 45

Multiple Choice

Regression analysis was applied between sales data (y in $1000s) and advertising data (x in $100s) and the following information was obtained. ​ = 12 + 1.8x
​
N = 17
SSR = 225
SSE = 75
Sb₁ = .2683
​
Based on the above estimated regression equation, if advertising is $3000, then the point estimate for sales (in dollars) is

• A) $66,000.
• B) $5412.
• C) $66.
• D) $17,400.

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Definitions:

Outstanding Stock

The number of shares of a corporation that have been issued and are currently owned by shareholders.

Net Income

The amount of profit remaining after all expenses, including taxes and interest, have been deducted from total revenues.

Valuation Allowance

An accounting technique used to offset or reduce the carrying value of certain tax assets if it's more likely than not that they will not be realized.

Unrealized Gain

The increase in value of an asset or investment that has not been sold or exchanged, thus not yet generating cash.