A Marketing Analyst Wants to Examine the Relationship Between Sales

question 62

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. When testing whether the slope coefficient differs from 3, the critical values at the 5% significance level are −2.069 and 2.069. The conclusion to the test is to ________.

• A) reject H₀; we can conclude the slope coefficient differs from 3
• B) not reject H₀; we can conclude the slope coefficient differs from 3
• C) reject H₀; we cannot conclude the slope coefficient differs from 3
• D) not reject H₀; we cannot conclude the slope coefficient differs from 3

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Definitions:

Controlling

In management, it refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed.

Communication

The process of exchanging information, ideas, thoughts, and messages through speech, writing, signals, or behavior.

Conflict Resolution

The removal of the substantive and emotional reasons for a conflict.

Teamwork

Collaborative effort by a group to achieve a common goal or complete a task in the most effective and efficient way.