A Friend of Yours Was Asked to Evaluate the Effect

question 12

Multiple Choice

A friend of yours was asked to evaluate the effect of an advertising campaign designed to get people to have their blood pressure checked. After examining the records kept in the target area, your friend showed you the following graph where X indicates an observation. ​ ​

• A)The ad campaign is producing the intended effect.
• B)The independent variable, the campaign, is affecting the dependent variable, the percent having their blood pressure checked.
• C)More observations are needed to determine whether the independent variable is having the intended effect.
• D)The ad campaign has no effect.
• E)The independent variable, the campaign, is not affecting the dependent variable, the percent having their blood pressure checked.

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Definitions:

Net Income

The income a company retains after deducting all costs, taxes, and expenses from its total revenue.

Discretionary Fixed Costs

Discretionary fixed costs are fixed expenses that can be adjusted or eliminated without directly impacting the short-term productivity of the business, such as advertising or research and development costs.

High-Low Method

An accounting technique used to estimate the variable and fixed components of a company's costs, based on the highest and lowest levels of activity.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.