A Regression Analysis Between Sales (In $1,000)and Advertising (In $1,000)resulted

question 119

Multiple Choice

A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in the following least squares line: . This implies that:

• A)as advertising increases by $1,000, sales increases by $5,000.
• B)as advertising increases by $1,000, sales increases by $80,000.
• C)as advertising increases by $5, sales increases by $80.
• D)None of these choices.

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Definitions:

Assets

The resources owned by a business.

Sales

The total amount of revenue generated from selling goods or services over a specific period.

Other Income

Income derived from activities that are not part of a company’s primary business operations.

Operating Activity

Operating activity involves the primary functions of a business that relate to its provision of goods and services to the market.