SCENARIO 12-2
a Candy Bar Manufacturer Is Interested in Trying

question 17

Multiple Choice

SCENARIO 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: $\begin{array}{llr}\text { City }&\text { Price(\$) }&\text { Sales }\\\text { River Falls } & 1.30 & 100 \\\text { Hudson } & 1.60 & 90 \\\text { Ellsworth } & 1.80 & 90 \\\text { Prescott } & 2.00 & 40 \\\text { Rock Elm } & 2.40 & 38 \\\text { Stillwater } & 2.90 & 32\end{array}$
-Referring to Scenario 12-2, what is the standard error of the estimate, SYX, for the data?

• A)0.784
• B)0.885
• C)12.650
• D)16.299

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, deposits, and other liquid assets.

Monetarist Approach

An economic theory emphasizing the role of governments in controlling the amount of money in circulation as a primary method in managing the economy and combating inflation.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and balances held in checking and savings accounts.

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the true productivity of the economy.