Regression Analysis Was Applied Between Sales (In $1000)and Advertising (In

question 90

Multiple Choice

Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained.


= 500 + 4 X
Based on the above estimated regression line if advertising is $10,000,then the point estimate for sales (in dollars) is

• A)$900
• B)$900,000
• C)$40,500
• D)$505,000

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Definitions:

Procter & Gamble

An American multinational consumer goods corporation, specializing in a wide range of personal health/consumer health, and hygiene products.

Store Brand Labels

Products that are manufactured or procured by a retailer and sold under its own brand name, typically at a lower price than national brands.

Brand Awareness

Consumers' recognition and knowledge of a specific brand's features or identity.

Company

An entity formed for the purpose of conducting business activities, which can range in size from sole proprietorships to large multinational corporations.