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:

Social Facilitation

The enhancement of a person's performance on simple or well-learned tasks in the presence of others.

Revenge

The act of inflicting harm or punishment on someone in retaliation for harm they have caused; motivated by a desire for justice or vengeance.

Normative Social Influence

A type of social influence that leads to conformity, where an individual changes their behavior in order to be accepted or liked by a group.

Distortion

The alteration of the original shape or other characteristic of something, often in a way that makes it appear misleading or unrealistic.