A Marketing Analyst Wants to Examine the Relationship Between Sales

question 7

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 table shows a portion of the regression results. Which of the following are the competing hypotheses used to test whether the slope coefficient differs from 3?

• A) H₀: b₁ = 3; H_A: b₁ ≠ 3
• B) H₀: b₁ = 2.88; H_A: b₁ ≠ 2.88
• C) H₀: β₁ = 3; H_A: β₁ ≠ 3
• D) H₀: β₁ = 2.88; H_A: β₁ ≠ 2.88

---

Definitions:

Autocratic Style

A leadership style characterized by individual control over all decisions with little input from group members.

Directive Actions

Specific measures or steps taken to guide or instruct towards achieving a particular goal or objective.

Work Environment

The physical and psychological conditions under which employees operate, including the workplace culture, physical space, and resources available.

Leader Personality

The specific traits and characteristics that contribute to an individual's effectiveness and style as a leader.