The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods,and advertising budgets averaging $3,000 over the last 10 periods is:
Y = 3250 + 120x
This indicates that a $1 increase in advertising will increase sales by:
A)$3370
B)$250
C)$120
D)$1875

Question

Quizplus · Accepted Answer

The coefficient of the independent variable (advertising budget) in the regression equation is 120. This means that for every one-unit increase in the advertising budget, the sales will increase by $120.

The Equation for a Simple Linear Regression That Saw Sales