SCENARIO 12-5
the Managing Partner of an Advertising Agency Believes

question 4

Short Answer

SCENARIO 12-5
The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: $\begin{array}{ll}{\text { Regression Statistics }} \\\text { Multiple R } & 0.802 \\\text { R Square } & 0.643 \\\text { Adjusted R Square } & 0.618 \\\text { Standard Error Syv } & 0.9234\\\text { Observations } & 16\end{array}$
ANOVA
$\begin{array}{lrrrcc} & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Sig.F } \\\text { Regression } & 1 & 21.497 & 21.497 & 25.27 & 0.000 \\\text { Error } & 14 & 11.912 & 0.851 & & \\\text { Total } & 15 & 33.409 & & &\end{array}$


$\begin{array}{llll}\text { Predictor Coef } & \text { StdError } t \text { Stat } & \text { P-value }\\\hline\text { Intercept }& 3.962 & 1.440 & 2.75 & 0.016 \\\text { Industry } &0.040451 & 0.008048 & 5.03 & 0.000\end{array}$

$\text { Durbin-Watson Statistic } \quad 1.59$
-Referring to Scenario 12-5, the standard error of the estimated slope coefficient is _.

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Definitions:

Perfect Information

A condition in decision-making where all relevant information is known to the decision-maker, including outcomes, events, and consequences for every choice.

Expected Payoff

The anticipated return or outcome of an investment, decision, or action, considering all possible results weighted by their probabilities.

Expected Opportunity Loss

The anticipated loss in value for choosing an option that is not the best, quantified as the difference between the best expected outcome and the expected outcome of the chosen option.

Expected Monetary Value

The weighted average of all possible outcomes of a decision, where each outcome is weighted by its probability of occurrence.