A Regression Analysis Linking Demand (Y in 1000 Units) to Price

question 47

Multiple Choice

A regression analysis linking demand (y in 1000 units) to price (x₁ in dollars) and advertising (x₂ in $1000s) resulted in the following equation: estimated Y = 9 - 5x₁ + 2x₂.This equation implies that a $1 increase in price can be associated with a ____ in demand.

• A)9000 - 5000 = 4000 unit increase
• B)9000 unit decrease
• C)9000 + 5000 = 14,000 unit decrease
• D)5,000 unit decrease
• E)none of the above

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Definitions:

Stanford-Binet

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