Exhibit 14-3.Consider the following sample regression equation ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if
A)the price of Product A increases by $1,then on average,demand decreases by 20.
B)the price of Product A increases by $1,then on average,demand increases by 20.
C)the price of Product A increases by $1,then on average,demand decreases by 20000.
D)the price of Product A increases by $1,then on average,demand increases by 20000.

Question

Exhibit 14-3.Consider the following sample regression equation  ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if
A)the price of Product A increases by $1,then on average,demand decreases by 20. 
B)the price of Product A increases by $1,then on average,demand increases by 20. 
C)the price of Product A increases by $1,then on average,demand decreases by 20000. 
D)the price of Product A increases by $1,then on average,demand increases by 20000.

Quizplus · Accepted Answer

The Answer of Exhibit 14-3.Consider the following sample regression equation  ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if
A)the price of Product A increases by $1,then on average,demand decreases by 20. 
B)the price of Product A increases by $1,then on average,demand increases by 20. 
C)the price of Product A increases by $1,then on average,demand decreases by 20000. 
D)the price of Product A increases by $1,then on average,demand increases by 20000.