Exhibit 14-4 Regression Analysis Was Applied Between Sales Data (Y in $1,000s)

question 127

Multiple Choice

Exhibit 14-4
Regression analysis was applied between sales data (Y in $1,000s) and advertising data (x in $100s) and the following information was obtained. = 12 + 1.8 x
n = 17
SSR = 225
SSE = 75
S_b1 = 0.2683
-Refer to Exhibit 14-4. To perform an F test, the p-value is

• A)less than .01
• B)between .01 and .025
• C)between .025 and .05
• D)between .05 and 0.1

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Definitions:

Accounting Profits

The total revenue of a business minus the explicit costs, reported on financial statements according to standard accounting practices.

Economic Profits

The disparity between total income and combined expenses, encompassing both out-of-pocket and hidden costs.

Economic Profits

The margin between an organization's complete earnings and its aggregate expenditures, covering both visible and hidden costs.

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the business for production instead of lending, selling, or renting them out.