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:

Service Charge

A fee collected for services provided, often added to the base cost of services in industries such as hospitality, banking, and utilities.

Credit Card

A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.

Journal Entry

A record of financial transactions in the accounting books, indicating the accounts and amounts debited and credited.

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected to turn into bad debts.