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:

Disputed Behavior

Refers to actions or conduct that are contended or contested by one or more parties in a legal or formal setting.

Injunction

A court order that either prohibits a party from doing a specific act (restraining order) or orders a party to carry out a specific act (mandatory order), typically to prevent harm or to preserve the status quo during litigation.

Civil Lawsuit

A legal action taken by one party against another for the purpose of resolving a dispute or claiming damages.

Deceptive Advertising

The practice of advertising with claims that mislead or could mislead a reasonable consumer.