A Manager Uses Regression to Express Sales as a Function

question 95

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 + .51X₁ + .45X_2. The coefficient of determination is .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 capital income.

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Definitions:

Lillian Gilbreth

An American psychologist and engineer known as the "mother of modern management," instrumental in developing industrial management techniques and the study of ergonomics.

Frederick Taylor

Known as the father of scientific management, he proposed that work processes could be optimized by breaking them down into smaller tasks and using scientific methods to determine the most efficient ways of performing them.

Labour Standards

Norms and criteria set to ensure fair working conditions, including wages, hours, and safety.

Labour Standards

Predetermined metrics or benchmarks that specify the time required for a worker to complete a specific task under normal working conditions.