Selling Price and Amount Spent Advertising Were Entered into a Multiple

question 9

Multiple Choice

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.Based on the output below, which of the following statements is/are true?

• A)The multiple regression model is significant overall.
• B)Selling Price is a significant independent variable in explaining Bravia sales.
• C)Amount Spent on Advertising is a significant independent variable in explaining Bravia sales.
• D)Only A and B
• E)A, B and C

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output in the short term.

Total Variable Costs

The total of all costs that vary with the level of output, including costs such as materials and labor that change with the scale of production.

Profit-Maximizing Level

The output level at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.