Selling Price and Amount Spent Advertising Were Entered into a Multiple

question 17

Multiple Choice

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The regression coefficient for Price
Was found to be -0.03055, which of the following is the correct interpretation for this Value?

• A) Increasing the price of the Sony Bravia by $100 will result in at least 3 fewer TV's sold.
• B) For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.
• C) Holding the amount spent on advertising constant, an increase of $100 in the price Of the Sony Bravia will decrease sales by 3.055 units.
• D) Holding the amount spent on advertising constant, an increase of $100 in the price Of the Sony Bravia will decrease sales by .03%.
• E) None of the above.

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Definitions:

Unemployment Rate

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Employed

Employed refers to individuals who are working for pay or profit, engaging in a job or business, within a stipulated period.

Unemployed

Refers to individuals who are capable of working and willing to work but cannot find employment.

Misery Index

An economic indicator created by summing the unemployment rate and inflation rate, intending to measure economic discomfort within a country.