Exhibit 14-5

question 47

Multiple Choice

Exhibit 14-5.An 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 .The following table below shows a portion of the regression results. Refer to Exhibit 14-5.Predict Sales for a firm with Advertising of $500.

• A)$1,480
• B)$40,100
• C)$54,500
• D)$148,000

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Definitions:

Chi-square Distribution

A probability distribution used in statistical analysis that is applicable when dealing with categorical data and assessing how likely observations are due to chance.

Skewed to the Right

Refers to a distribution where the tail is on the right side, indicating that the majority of data points are concentrated on the left.

Null Hypothesis

A default statement that assumes no effect or no difference in the statistical testing framework, to be tested against the alternative hypothesis.

Two-Way Tables

A type of table used in statistics to display data collected from two categorical variables.