A Marketing Analyst Wants to Examine the Relationship Between Sales

question 73

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 Advertising is significant at the 10% significance level, the conclusion is to ________.

• A) reject H₀; we can conclude advertising is significant
• B) not reject H₀; we cannot conclude advertising is significant
• C) reject H₀; we cannot conclude advertising is significant
• D) not reject H₀; we can conclude advertising is significant

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.