1. Regression analysis was applied between demand for a product (Y) and the price of the product (X), and the following estimated regression equation was obtained.

Y = 120 - 10 X

Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to

Select one:

a. Increase by 100 units

b. Decease by 20 units

c. Increase by 20 units

d. Increase by 120 units

2. In a simple regression analysis (where Y is a dependent and X an independent variable), if the Y intercept is positive, then

Select one:

a. If X is increased, Y must also increase

b. If Y is increased, X must also increase

c. There is a positive correlation between X and Y

d. None of these alternatives is correct.

3. In the regression line y=100-24x;

Select one:

a.

y is dependent variable

b.

100 is slope

c.

24 is intercept

d.

y is independent variable

4. Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained.

Y= 500 + 4 X

Based on the above estimated regression line if advertising is $10,000, and then the point estimate for sales (in dollars) is

Select one:

a. 40,500

b. 900,000

c. 505,000

d. 500

5. A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation

Y = 60 - 8X

The above equation implies that an

Select one:

a. Increase of $8 in price is associated with an decrease of $52,000 in sales

b. Increase of $1 in price is associated with a decrease of $8000 in sales

c. Increase of $1 in price is associated with a decrease of $52 in sales

d. Increase of $1 in price is associated with a decrease of $8 in sales