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The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the forecast for this year’s sales? And what is the percent change in sales compared to last year? y = 1.6 + 0.7x     Select one: a. $2.65 billion; decreased about 13.2%. b. $3.35 billion; increased about 10.14%. c. $2.65 billion; decreased about 11.7%. d. $2.75 billion; decreased about 8.3%. e. $3.35 billion; increased about 11.7%

The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the forecast for this year’s sales? And what is the percent change in sales compared to last year? y = 1.6 + 0.7x     Select one: a. $2.65 billion; decreased about 13.2%. b. $3.35 billion; increased about 10.14%. c. $2.65 billion; decreased about 11.7%. d. $2.75 billion; decreased about 8.3%. e. $3.35 billion; increased about 11.7%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the forecast for this year’s sales? And what is the percent change in sales compared to last year?

y = 1.6 + 0.7x

 


 

Select one:
a.

$2.65 billion; decreased about 13.2%.

b.

$3.35 billion; increased about 10.14%.

c.

$2.65 billion; decreased about 11.7%.

d.

$2.75 billion; decreased about 8.3%.

e.

$3.35 billion; increased about 11.7%

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