A Regression Analysis Between Sales (Y in $1000) and Advertising

question 75

Multiple Choice

A regression analysis between sales (Y in $1000) and advertising (X in dollars) resulted in the following equation = 30,000 + 4 X
The above equation implies that an

• A)increase of $4 in advertising is associated with an increase of $4,000 in sales
• B)increase of $1 in advertising is associated with an increase of $4 in sales
• C)increase of $1 in advertising is associated with an increase of $34,000 in sales
• D)increase of $1 in advertising is associated with an increase of $4,000 in sales

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Definitions:

Short Term Debt

Refers to any financial obligation that is due for repayment within one year.

Interest Rate

The portion of a loan subject to interest fees for the borrower, typically indicated as an annual percentage of the remaining loan principal.

Paid Now

A term indicating an immediate payment or settlement of a transaction.

Rate Of Return

How much an investment's value has grown or shrunk over an agreed-upon time, expressed as a percent of its original price.