Suppose You Estimate Restaurant Sales as a Function of the Quality

question 30

Multiple Choice

Suppose you estimate restaurant sales as a function of the quality of SERVICE,PRICE,and consumer INCOME and you get the following results (p-values in parentheses) $\begin{array} { lllll } \text { Sales } _ { i } = & 4,567.29 + &1,245.77 \text { Service } _ { i } + &849.36 \text { Price } _ { i } +& 72.81 \text { Income } _ { i } \\&( 0.003 ) & ( 0.096 ) & ( 0.103 ) & ( 0.047 ) \end{array}$
Given our usual language,we would conclude that

• A)SERVICE,PRICE,and INCOME are all statistically significant.
• B)INCOME and SERVICE are statistically significant;PRICE is marginally significant.
• C)INCOME is statistically significant;SERVICE and PRICE are marginally significant.
• D)INCOME is statistically significant;SERVICE are marginally significant;PRICE is statistically insignificant.

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Definitions:

Target Profit

The predetermined profit that a company aims to achieve in a specific period.

Dollar Sales

The total value of sales measured in monetary terms, without adjusting for changes in volume or price.

Break-even

The point at which total costs equal total revenues, resulting in no profit or loss.

Monthly Unit Sales

The quantity of units of a product sold within a month.