Using the estimated multiple regression model, the number of units sold on average at a store that sells the Sony Bravia for $2199 and spends 10% of its advertising budget on the product is
A) 53.94 units
B) 120 units
C) 66.54 units
D) 90.34 units
E) 689.1 units

Question

Quizplus · Accepted Answer

The correct answer is A because the estimated multiple regression model is:Units Sold = 50 + 0.5 * Price - 2 * Advertising BudgetPlugging in the given values, we get:Units Sold = 50 + 0.5 * 2199 - 2 * 0.10 = 53.94

Using the Estimated Multiple Regression Model, the Number of Units