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If the Determining Function for Sales Is Given by Sales_i

Question 6

Multiple Choice

If the determining function for Sales is given by Sales_i = α₀ + α₁Price_i + U_i, what will the correlation between Sales and Price be?

A) α₀ + α₁
B) α₁
C) Cor(Price_i, U_i)
D) There is not enough information.

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