Typically,the Sales Volume Declines with an Increase of a Product

question 71

Multiple Choice

Typically,the sales volume declines with an increase of a product price.It has been observed,however,that for some luxury goods the sales volume may increase when the price increases.The following Excel output illustrates this rather unusual relationship. For which of the following two prices are the sales predicted by the quadratic regression equation equal 1700 units?

• A) 60.51 and 150.15
• B) 61.51 and 151.15
• C) 62.51 and 152.15
• D) 63.51 and 153.15

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Definitions:

Rate of Return

Returns or drawbacks experienced in an investment over an established period, articulated as a percentage of the investment's outlay.

Calculating

The process of determining a quantitative answer or figure through mathematical operations or procedures.

Benchmark Portfolio

A standard or reference by which the performance of a portfolio can be measured or judged.

Passive Strategy

An investment strategy involving minimal buying and selling actions, typically focused on long-term investment in index funds or Exchange-Traded Funds (ETFs).