A Regression Analysis Between Sales (Y in $1000) and Advertising

question 84

Multiple Choice

A regression analysis between sales (y in $1000) and advertising (x in $100) resulted in the following least squares line: = 82 +7x. This implies that if advertising is $900, then the predicted amount of sales (in dollars) is:

• A) $6,382
• B) $88,300
• C) $145,000
• D) $82,063
• E) 6382000

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Definitions:

Customer Loyalty

The tendency of consumers to continue buying from the same brand or company, often due to satisfaction, convenience, or perceived value.

Business Strategy

A plan of action designed by an organization to achieve its vision and goals, outlining the steps the business will take to compete effectively in its industry.

Learning Curve Effects

The observed improvement in performance or efficiency as individuals or organizations gain experience in a particular task or activity over time.

Economies of Scale

The economic benefits that businesses gain from operating at a larger scale, typically resulting in lower costs per unit of production as the scale increases.