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:

Alternative Evaluation

The process consumers undertake to assess the benefits and drawbacks of different options before making a purchase decision.

Problem Recognition

The initial step in the consumer decision process where an individual realizes a difference between their current state and a desired state.

Ideal Situations

Circumstances or conditions perceived as the most favorable or perfect for achieving specific goals or outcomes.

Consumer Purchase Decision

The process that consumers go through in identifying and evaluating options before making a buying choice.