A Marketing Analyst Wants to Examine the Relationship Between Sales

question 64

Multiple Choice

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms.He estimates the model: Sales = β₀ + β₁ Advertising + ε.The following table shows a portion of the regression results. When testing whether Advertising is significant at the 10% significance level,the conclusion is to _______________________________.

• A) reject H₀;advertising is significant
• B) not reject H₀;advertising is significant
• C) reject H₀;advertising is not significant
• D) not reject H₀;advertising is not significant

---

Definitions:

Total Employment

The total number of people currently employed in the economy, including both full-time and part-time workers.

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to inputs in the production process.

Agriculture

The practice of cultivating land, raising crops, and feeding, breeding, and raising livestock; it is a key component of the food supply chain.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.