A Marketing Analyst Wants to Examine the Relationship Between Sales

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 collects monthly data for 25 firms. He estimates the model: Sales = β₀ +β₁ Advertising + ε. The following ANOVA table shows a portion of the regression results. Which of the following is the predicted Sales for a firm with Advertising of $500?

A) $1,480
B) $40,100
C) $54,500
D) $148,000