The Regression Output for Sales and Advertising Spend Is Shown

question 73

Multiple Choice

The regression output for sales and advertising spend is shown below. Model summary
$$\begin{array} { | l | l | r | r | r | } \hline \text { Model } & \boldsymbol { R } & \boldsymbol { R } \text {-square } & \begin{array} { c } \text { Adjusted } \\\boldsymbol { R } \text {-square }\end{array} & \begin{array} { r } \text { Std. error of } \\\text { the estimate }\end{array} \\\hline 1 & .445 \text { (a) } & .198 & .169 & 1229.780 \\\hline\end{array}$$ a Predictors: (Constant) , advertising spend
ANOVA(b)
$$\begin{array} { | l | l | r | r | r | r | c | } \hline \text { Model } & & \begin{array} { c } \text { Sum of } \\\text { squares }\end{array} & \text { df } & \text { Mean square } & { \boldsymbol { F } } & \text { Sig. } \\\hline 1 & \text { Regression } & 10448599.647 & 1 & 10448599.647 & 6.909 & .014 ( \mathrm { a } ) \\\hline & \text { Residual } & 42346067.019 & 28 & 1512359.536 & & \\\hline & \text { Total } & 52794666.667 & 29 & & & \\\hline\end{array}$$ a Predictors: (Constant) , advertising spend
B Dependent variable: Sales (A$'000)
Coefficients(a)
$$\begin{array} { | l | l | c | r | r | r | r| } \hline \text { Model } & &{ \begin{array} { c } \text { Unstandardised } \\\text { coefficients }\end{array} } & \begin{array} { c } \text { Standardised } \\\text { coefficients }\end{array} & { \boldsymbol { t } } & { \text { Sig. } } \\\hline & & \boldsymbol { B } & \text { Std. Error } & \text { Beta } & & \\\hline 1 & \text { (Constant) } & 2993.298&706.247&&4.238&.000 \\\hline & \text { Number of salespeople } & 42.928&16.332&.445&2.628&.014\\\hline\end{array}$$ a Dependent variable: Sales (A$'000)
The above shows that:

• A) approximately 45 per cent of the variance in sales can be explained by advertising spend.
• B) approximately 43 per cent of the variance in Sales can be explained by advertising spend.
• C) approximately 14 per cent of the variance in sales can be explained by advertising spend.
• D) approximately 20 per cent of the variance in sales can be explained by advertising spend.

---

Definitions:

Newly Hatched Chicks

describes chicks that have recently emerged from their eggs, marking the initial stage of their life outside the eggshell.

Depth

A measure of the distance from the surface or top to the bottom of something or the quality of being profound or intense.

John Locke

A 17th-century English philosopher known for his work on the theory of mind, identity, and political philosophy, particularly regarding the rights of individuals and the concept of the social contract.

Immanuel Kant

A German philosopher from the 18th century, known for his critical contributions to the fields of epistemology, ethics, and aesthetics.