THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 176

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
-A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: = 75 + 5x.This implies that if advertising is $800,then the predicted amount of sales (in dollars) is:

• A)$4075
• B)$115,000
• C)$164,000
• D)$179,000

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that govern how financial statements should be prepared and presented globally.

Local Environment

The specific conditions and natural surroundings in which a business or entity operates, including factors like climate, ecology, and community.

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.

CICA Handbook

The official guide published by the Canadian Institute of Chartered Accountants detailing accounting standards and practices in Canada.