Suppose You Estimate the Following the Degree to Which HDTV

question 23

Multiple Choice

Suppose you estimate the following the degree to which HDTV sales (in millions of units) are related to price,consumer income,and a time-trend as (p-values in parentheses)

$$\begin{array} { lllll } HD\widehat {TV~ S}ales _ { t } =& 15.43 -& 0.168 \text {Price} +& 0.247 \text {Income } +& 3.52 \text {Time Trend }\\& ( 0.023 ) & ( 0.102 ) & ( 0.028 ) & ( 0.046 ) \\\end{array}$$
You should conclude that the data do

• A)not exhibit a time-trend because the estimated coefficient for Price is not statistically significant.
• B)exhibit a time-trend because the estimated coefficient for Income is positive and statistically significant.
• C)not exhibit a time-trend because the estimated coefficient for the Time Trend is positive.
• D)exhibit a time-trend because the estimated coefficient for the Time Trend is statistically significant.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, indicating its financial health.

Break-even Quantity

The volume of production or sales at which total costs equal total revenue, meaning there is no net loss or gain.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service, crucial for pricing and production decisions.