[35] Suppose we believe that increases in advertising increase a firm's profit, yet increases in research and development decrease a firm's profit. We then hypothesize the following relationship: PROFIT = B, + B,ADV + B„RD, where PROFIT is the firms' profit, ADV is the firm's advertising expenditure, and RD is the firm's research and development expenditure. If our belief is correct, then we should find: A. B, > 0; B, < 0 B, = 0; B2 < 0 В. %3! с. B, > 0; B2 < 0 B, < 0; ß, > 0 D.

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.