In a particular industry it is known that the standardized regression coefficient for predicting likely profit from number of advertisements is .7. A company is planning to place 18 advertisements. Which of the following pieces of information will be needed as part of predicting the actual amount of profit?
A)Length of time the company has been in business
B)Mean number of advertisements in general and standard deviation
C)This company's profit to date
D)This company's number of advertisements in the previous year

Question

Quizplus · Accepted Answer

The standardized regression coefficient (.7) indicates the strength and direction of the relationship between the number of advertisements and likely profit, but to predict the actual amount of profit, one needs to know the mean number of advertisements and the standard deviation. This information is necessary to convert the standardized coefficient into a form that can be used with actual data (in this case, the 18 advertisements) to predict profit.

In a Particular Industry It Is Known That the Standardized