A Marketing Analyst Wants to Examine the Relationship Between Sales

question 98

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 so collects monthly data for 25 firms. He estimates the model: Sales = β₀ + β₁ Advertising + ε. The following table shows a portion of the regression results. Which of the following are the competing hypotheses used to test whether Advertising is significant in predicting Sales?

• A) H₀: b₁ = 0; H_A: b₁ ≠ 0.
• B) H₀: b₁ = 2.88; H_A: b₁ ≠ 2.88.
• C) H₀: β₁ = 0; H_A: β₁ ≠ 0.
• D) H₀: β₁ ≠ 0; H_A: β₁ = 0.

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Definitions:

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with empathy, trust, sexual activity, and relationship-building behaviors.

ACTH

Adrenocorticotropic Hormone, a pituitary hormone that stimulates the production of cortisol from the adrenal cortex.

Adenohypophysis

The anterior lobe of the pituitary gland responsible for secreting several key hormones that regulate various physiological processes.

Prostaglandin

Class of physiologically active substances present in many tissues; among its effects are vasodilation, stimulation and contraction of uterine smooth muscle and the promotion of inflammation and pain.