A Regression Analysis Between Sales (Y in $1000)and Advertising (X

question 140

Multiple Choice

A regression analysis between sales (Y in $1000) and advertising (X in dollars) resulted in the following equation

= 30,000 + 4 X
The above equation implies that an

• A)increase of $4 in advertising is associated with an increase of $4,000 in sales
• B)increase of $1 in advertising is associated with an increase of $4 in sales
• C)increase of $1 in advertising is associated with an increase of $34,000 in sales
• D)increase of $1 in advertising is associated with an increase of $4,000 in sales

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Definitions:

Held-to-Maturity Debt Securities

Debt instruments that a company intends and is able to hold until they mature, recorded at amortized cost in the company's financial statements.

Trading Debt Securities

The buying and selling of debt investments like bonds, often for speculation or income generation.

Stock Investments

Financial assets representing shares of ownership in a company, acquired for income or capital appreciation.

Profit Margin

A financial metric used to evaluate a company's profitability by comparing net income to revenue, often expressed as a percentage.