An Marketing Analyst Wants to Examine the Relationship Between Sales

question 107

Multiple Choice

An 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 collects monthly data for 25 firms.He estimates the model: Sales = β₀ +β₁ Advertising + ε.The following ANOVA table below shows a portion of the regression results. Which of the following is true?

• A) If Advertising goes up by $100,then on average,Sales go up by $2,880.
• B) If Sales go up by $100,then on average,Advertising goes up by $2,880.
• C) If Advertising goes up by $100,then on average,Sales go up by $4,298.
• D) If Sales go up by $100,then on average,Advertising goes up by $4,298.

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Definitions:

Production Supervisors

Individuals responsible for overseeing the production process and ensuring that manufacturing operations are carried out efficiently.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to individual units of product based on a predetermined rate or activity base.

Direct Materials

Materials directly related and identifiable in the production of a particular item.

Finished Goods

Products that are finished being made but haven't been purchased by consumers yet.