Consider the Following Regression Analysis Between Sales (Y in $1,000)and

question 24

Multiple Choice

Consider the following regression analysis between sales (Y in $1,000) and social media advertising (X in dollars) . = 55,000 + 7X The regression equation implies that an ________.

• A)increase of $7 in advertising is associated with an increase of $7,000 in sales
• B)increase of $1 in advertising is associated with an increase of $7 in sales
• C)increase of $1 in advertising is associated with an increase of $62,000 in sales
• D)increase of $1 in advertising is associated with an increase of $7,000 in sales

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Discount Rate

In discounted cash flow analysis, it's the rate used to bring future cash flows down to their present worth.

Accounting Break-even Quantity

The number of units that must be sold to cover all costs, both fixed and variable, with no profit or loss.

Variable Costs

Outgoings that are contingent upon the scale of production operations.