A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: = 84 +7X. This implies that if advertising is $800, then the predicted amount of sales (in dollars) is $140,000.

Question

A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line:  = 84 +7X. This implies that if advertising is $800, then the predicted amount of sales (in dollars) is $140,000.

Quizplus · Accepted Answer

If advertising is $800 (X=8), then the predicted amount of sales (in dollars) is:
11eb06d9_cc88_a911_8177_3952683857ab_TB1387_12 = 84 + 7(8) = 140
Therefore, the predicted amount of sales in $1000 is $140,000. So, the statement is true.

A Regression Analysis Between Sales (In $1000) and Advertising (In