Exhibit 12-3 Regression Analysis Was Applied Between Sales Data (In $1,000s) and $1,000s)

question 31

Multiple Choice

Exhibit 12-3
Regression analysis was applied between sales data (in $1,000s) and advertising data (in $100s) and the following information was obtained.

-Refer to Exhibit 12-3. Using   0.05, the critical t value for testing the significance of the slope is

• A)1.753
• B)2.131
• C)1.746
• D)2.120

Recognize the elasticity of demand and supply and its role in determining tax incidence.

Understand how excise taxes affect consumer surplus, producer surplus, and deadweight loss.

Identify the relationship between tax rates and tax revenue in the context of elasticity.

Understand how government policies, such as excise taxes, can influence market outcomes and efficiency.

---

Definitions:

Diversification

The process of a business enlarging or varying its range of products or field of operation to reduce risk and increase profit.

Market Penetration

Strategies aimed at increasing the market share of a product or service within existing markets.

Diversification

A strategy to reduce risk by allocating investments or focusing efforts across various financial instruments, industries, or other categories.

Product Development

The process of conceptualizing, designing, creating, and bringing a new product or service to market.