A regression analysis between sales (in $)and advertising (in $)resulted in the following least squares line: $\hat { y } = 60 + 5 x$ .This implies that an increase of $1 in advertising is associated with an increase of $60 in sales.

Question

Quizplus · Accepted Answer

An increase of $1 in advertising is associated with an increase of $5 in sales, not $60. The intercept term of the least squares line represents the estimated sales when advertising is zero, which in this case is $60.

A Regression Analysis Between Sales (In $)And Advertising (In $)Resulted y^=60+5x\hat { y } = 60 + 5 xy^​=60+5x

A Regression Analysis Between Sales (In $)And Advertising (In $)Resulted $\hat { y } = 60 + 5 x$