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

question 25

Multiple Choice

Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained.  500 + 4x 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

---

Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Manufacturing Cycle Time

The total time taken from the start of production to the completion of the final product, including all processing and waiting times.

JIT Systems

Just-in-time production strategies that aim to reduce in-process inventory and carrying costs by producing only what is needed, when it's needed.

TPS

An acronym for Toyota Production System, a methodology that aims to increase efficiency by eliminating waste and improving production processes.