Exhibit 13-2
a Regression Model Between Sales Y in $1,000) $\hat { Y }$

question 97

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:
$\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of the unit price indicates that if the unit price is

• A) increased by $1 holding advertising constant), sales are expected to increase by $3
• B) decreased by $1 holding advertising constant), sales are expected to decrease by $3
• C) increased by $1 holding advertising constant), sales are expected to increase by $4,000
• D) increased by $1 holding advertising constant), sales are expected to decrease by $3,000

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Definitions:

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the value-added time divided by the total throughput time.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested goods.

Throughput Time

The total time taken to produce and deliver a product, including all processing, inspection, setup, and wait times.

Fill Orders

The process of completing customer orders by preparing and delivering the requested goods.