A Marketing Analyst Wants to Examine the Relationship Between Sales

question 111

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 + β₁Advertising + ε. The following ANOVA table shows a portion of the regression results. Which of the following is the coefficient of determination?

• A) 0.1348
• B) 0.1558
• C) 0.8442
• D) 0.8652

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Definitions:

Implicit Costs

Costs that represent the opportunity cost of using resources owned by the firm for its own production instead of earning income elsewhere.

Accounting Profit

The net income reported on the financial statements, calculated as total revenues minus explicit costs.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Marginal Product

The additional output that is produced by adding one more unit of a particular input, holding all other inputs constant.