Data Were Collected on Monthly Sales Revenues (In $\$ 1,000 \mathrm {~s}$

question 4

Multiple Choice

Data were collected on monthly sales revenues (in $\$ 1,000 \mathrm {~s}$ ) and monthly advertising expenditures $( \$ 100 \mathrm {~s} )$ for a sample of drug stores. The regression line relating revenues $( \mathrm { Y } )$ to advertising expenditure $( \mathrm { X } )$ is estimated to be $\hat { y } = - 48.3 + 9.00 x$ . The correct interpretation of the slope is that for each additional

• A) \(\$ 1\) spent on advertising, predicted sales revenue increases by \(\$ 9,000\).
• B) \(\$ 100\) spent on advertising, predicted sales revenue increases by \(\$ 9,000\).
• C) \(\$ 100\) spent on advertising, predicted sales revenue decreases by \(\$ 9,000\).
• D) \(\$ 1,000\) in sales revenue, advertising expenditures decrease by \(\$ 48.30\).
• E) \(\$ 100\) in sales revenue, advertising expenditures decrease by \(\$ 48.30\).

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Definitions:

Retail Giants

Large and dominant companies in the retail industry known for their extensive market reach and influence.

Data Mining

The process of analyzing large sets of data to discover patterns, trends, and useful information that can inform decision-making.

U.S. Bureau Of The Census

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

Potential Market

The total possible demand for a product or service, considering all individuals who could potentially become customers.