Multiple Choice
Exhibit 13-2
A regression model between sales Y in $1,000) , unit price X1 in dollars) and television advertisement X2 in dollars) resulted in the following function:
=7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of the unit price indicates that if the unit price is
A) increased by $1 holding advertising constant) , sales are expected to increase by $3
B) decreased by $1 holding advertising constant) , sales are expected to decrease by $3
C) increased by $1 holding advertising constant) , sales are expected to increase by $4,000
D) increased by $1 holding advertising constant) , sales are expected to decrease by $3,000
Correct Answer:

Verified
Correct Answer:
Verified
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