Solved

The Fresh Express Beverage Company Is Interested in Evaluating the Effects

Question 76

Multiple Choice

The Fresh Express Beverage Company is interested in evaluating the effects of advertising spend on the sales of their products.Based on historical data,they develop the following equation which approximates this relationship: y = 2.5 + 0.02x,where y is the number of bottles of beverages sold measured in millions of units,and x = amount of money spent on advertising measured in millions of dollars.Based on this information,which of the following statements is correct?


A) Every additional million dollars spent on advertising will increase the beverage sales by 200,000 units.
B) The Company will sell a minimum of 2.5 million units even if no money is spent on advertising.
C) Every additional 20,000 dollars spent on advertising will increase the beverage sales by a million units.
D) The number of units of beverage sold will decrease beyond a certain amount of money spent on advertising.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents