Regression Analysis Was Applied Between Sales (In $10,000)and Advertising (In

question 118

Multiple Choice

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained.



= 50 + 8 X
Based on the above estimated regression line if advertising is $1,000,then the point estimate for sales (in dollars) is

• A)$8,050
• B)$130
• C)$130,000
• D)$1,300,000

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Definitions:

Benefit Segmentation

A marketing strategy that involves dividing a market into segments based on the different benefits consumers seek from the product.

Psychographic Segmentation

The division of a market into segments based on consumer psychology, including their lifestyle, values, attitudes, and personality.

Geodemographic Segmentation

A marketing tool that combines geography with demographic information to categorize consumers into specific groups for targeted marketing.

Loyalty Segmentation

The process of dividing a customer base into groups based on the degree of loyalty they exhibit towards a brand or product.