A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in the following least squares line: .This implies that:
A) as advertising increases by $1,000, sales increases by $5,000.
B) as advertising increases by $1,000, sales increases by $80,000.
C) as advertising increases by $5, sales increases by $80.
D) None of these choices.

Question

A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in the following least squares line:  .This implies that:
A) as advertising increases by $1,000, sales increases by $5,000. 
B) as advertising increases by $1,000, sales increases by $80,000. 
C) as advertising increases by $5, sales increases by $80. 
D) None of these choices.

Quizplus · Accepted Answer

The slope of the least squares line gives the change in sales for every $1,000 increase in advertising. Therefore, as per the given line, for every $1,000 increase in advertising, sales increase by $5,000.

A Regression Analysis Between Sales (In $1,000) and Advertising (In