THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 16

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
-Determine the value of residual sum of squares.

• A)10,945.2
• B)11,759.9
• C)10,130.5
• D)36,935.8

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Definitions:

Net Income

The remaining earnings of a company once expenses and taxes are subtracted from the gross revenue.

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

Default

Failure to fulfill a financial obligation, such as missing a loan repayment.

Debt

An amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances, which needs to be paid back.