Exhibit 14-5

question 70

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.Interpret the slope coefficient.

• A)If Advertising goes up by $100,then on average,Sales go up by $2,880.
• B)If Sales go up by $100,then on average,Advertising goes up by $2,880.
• C)If Advertising goes up by $100,then on average,Sales go up by $4,298.
• D)If Sales go up by $100,then on average,Advertising goes up by $4,298.

---

Definitions:

Adequate Consideration

The fair and reasonable value exchanged in a contract that is sufficient to make the agreement binding and enforceable.

Requirement

is a necessary or obligatory condition that must be met or complied with, often specified for purposes like quality, safety, or performance.

Consideration

A fundamental concept in contract law, referring to something of value that is exchanged between parties as part of an agreement.

Gratuitous Promise

A promise for which no consideration is given and which is not legally binding.