Exhibit 13-2 A Regression Model Between Sales (Y in $1,000), Unit Price

question 35

Multiple Choice

Exhibit 13-2
A regression model between sales (y in $1,000) , unit price (x₁ in dollars) and television advertisement (x₂ in dollars) resulted in the following function: = 7 - 3x₁ + 5x₂
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of x₂ indicates that if television advertising is increased by $1 (holding the unit price constant) , sales are expected to

• A)increase by $5
• B)increase by $12,000
• C)increase by $5,000
• D)decrease by $2,000

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