The Correlation Between Sales and Radio Ad Budget

question 13

Multiple Choice

The correlation between sales and radio ad budget

• A)is 0.
• B)is negative.
• C)is approximately .9.
• D)is less than .75.
• E)cannot be calculated, because the number of data points is too small.

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Definitions:

Consumption

The use of goods and services by households, constituting one of the major components of gross domestic product (GDP).

Planned Investment

Expenditures that businesses intend to make for the purposes of capital improvements, equipment, or inventory.

Imports

Goods and services purchased from foreign producers by a country’s residents.

U.S. Income

This term describes the total national income earned by residents and businesses within the United States, comprising wages, rents, interest, and profits.