Selling Price and Amount Spent Advertising Were Entered into a Multiple

question 5

Multiple Choice

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The regression coefficient for Price was found to be -0.03055, which of the following is the correct interpretation for this value?

• A)Increasing the price of the Sony Bravia by $100 will result in at least 3 fewer TV's sold.
• B)For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.
• C)Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by 3.055 units.
• D)Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by .03%.
• E)None of the above.

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Definitions:

Respondent Conditioning

A form of learning in which a neutral stimulus becomes associated with a reflexive response through conditioning, also known as classical conditioning.

Consequences

Outcomes or effects that result from a given action or condition.

Social Learning

A theory that proposes people can learn new behaviors and information by observing others, also known as observational learning.

Overt Responses

Visible or externally observable actions or reactions to stimuli.