Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. If the scatterplots of sales versus
Both selling price and amount spent on advertising are created, they are being used to
Determine whether
A) the nearly normal assumption is satisfied.
B) the randomization condition is satisfied.
C) the linearity condition is satisfied.
D) both A and B.
E) both A and C.

Question

Quizplus · Accepted Answer

The scatterplots of sales versus both selling price and amount spent on advertising are used to check the linearity condition in multiple regression analysis. This condition assesses whether the relationship between the predictors (selling price and advertising spend) and the response variable (sales) can be appropriately modeled using a linear equation.

Selling Price and Amount Spent Advertising Were Entered into a Multiple