A Marketing Analyst Wants to Examine the Relationship Between Sales

question 122

Multiple Choice

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model: Sales = β₀ +β₁ Advertising + ε. The following ANOVA table shows a portion of the regression results. Which of the following is true?

• A) If Advertising goes up by $100, then we predict Sales to go up by $2,880.
• B) If Sales go up by $100, then we predict Advertising to go up by $2,880.
• C) If Advertising goes up by $100, then we predict Sales to go up by $4,298.
• D) If Sales go up by $100, then we predict Advertising to go up by $4,298.

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Definitions:

Every Customer

Refers to each individual or entity that purchases goods or services from a business or market.

Minimum Wage

The lowest legal hourly pay for workers, established by law or contract.

Labor Demanded

The total quantity of workers that employers are willing and able to hire at a given wage rate within a specific period, reflecting the hiring needs of firms.

Demand D1

A term that might be used in economic models or discussions to refer specifically to a particular demand curve or demand scenario.