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

question 10

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 (Y) to advertising expenditure $( \mathrm { X } )$ is estimated to be $\hat { y } = - 48.3 + 9.00 x$ . The predicted sales revenue for a month in which $\$ 1,000$ was spent on advertising is

• A) \(\$ 50,000\).
• B) \(\$ 851.70\).
• C) \(\$ 8,951.70\).
• D) \(\$ 41,700\).
• E) \(\$ 90,000\).

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Definitions:

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing monopolies.

Consumer Protection Act

A legal provision designed to protect the rights of consumers from unfair trade practices, defective goods, and misleading advertisements.

Treble Damages

A legal provision allowing a court to triple the amount of damages to be awarded, typically used as a punishment in certain lawsuits.