A Regression Analysis Between Sales (In $1000)and Advertising (In $)Resulted

question 129

Multiple Choice

A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line: = 80,000 + 4x.This implies that:

• A)an increase of $1 in advertising is expected to result in an increase of $4 in sales.
• B)an increase of $4 in advertising is expected to result in an increase of $4,000 in sales.
• C)an increase of $1 in advertising is expected to result in an increase of $80,000 in sales.
• D)an increase of $1 in advertising is expected to result in an increase of $4,000 in sales.

Recognize the role of collaborative planning, forecasting, and replenishment (CPFR) in supply chain management.

Understand the essence of mean absolute deviation (MAD) and bias as metrics of forecast accuracy.

Identify different types of errors in demand forecasting and how to calculate forecast error.

Understand the similarities and differences between CPFR (Collaborative Planning, Forecasting, and Replenishment) and S&OP (Sales and Operations Planning) processes.

---

Definitions:

CAFTA

The Central America Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers and increase economic cooperation.

Trade Agreement

A treaty between two or more nations regarding the terms of trade between them, often aiming to reduce tariffs and foster trade.

Central America

A region located in the southernmost part of North America, consisting of seven countries between Mexico to the north and Colombia to the south, known for its diverse geography and cultures.

International Monetary Fund

An international organization that aims to promote global economic stability and growth by providing monetary cooperation and financial assistance to its member countries.