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Consider the following regression equation:
Salesi = 10.0 + 1.25 R&Di + 1.0 ADVi – 2.0 COMPi + 8.0 CAPiWhich of the following is NOT a correct interpretation of this regression information A. If a company spends $1 million more on capital expenditures (holding everything else constant), Sales are expected to increase by $8.0 million. B. One more competitor will mean $2 million less in Sales (holding everything else constant). C. If R&D and advertising expenditures are $1 million each, there are 5 competitors, and capital expenditures are $2 million, expected Sales are $8.25 million. |