Regression Analysis Was Applied Between Sales (In $1000) and Advertising

question 135

Multiple Choice

Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained. = 500 + 4 X
Based on the above estimated regression line if advertising is $10,000, then the point estimate for sales (in dollars) is

• A)$900
• B)$900,000
• C)$40,500
• D)$505,000

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Definitions:

Involvement

The personal, financial, and social significance of the decision being made.

Low-involvement Products

Goods and services that require minimal thought and effort from the consumer before being purchased, often due to their low cost or frequent use.

In-store Promotion

Marketing strategies implemented within physical retail locations to increase product awareness and stimulate sales.

Television Commercials

Short visual advertisements that are broadcasted on television to promote products, services, or ideas to a wide audience.