A Manager Uses Regression to Express Sales as a Function

question 61

Multiple Choice

A manager uses regression to express sales as a function of advertising expenditures (X1) , and per capita income (X2) in your sales area. The following multiple linear regression equation is developed:
Y = 10 + 0.51X1 + 0.45X2
The coefficient of determination is 0.96
This coefficient of determination explains that:

• A) 96% of sales variations are due to an error term.
• B) The dependent variable is not related to advertising expenditures and per capita income.
• C) 96% of sales variations are explained by the equation.
• D) Only 4% of the sales variations are explained by advertising expenditures and per capita income.

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Definitions:

Upright

Upright refers to an orientation or position in which something is situated vertically and straight relative to the ground or normal direction of gravity; often used to describe the posture of humans and objects.

Australopithecus Species

A group of extinct hominids closely related to humans, known for walking upright and living millions of years ago.

Sequence

An ordered list of elements or events that follow a specific pattern or arrangement.

Homo Erectus

An extinct species of hominid that lived from the end of the Pliocene epoch to the early Pleistocene, known for being one of the first to use fire and simple tools.