A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: = 84 +7X. This implies that if there is no advertising, then the predicted amount of sales (in dollars) is $84,000.

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 there is no advertising, then the predicted amount of sales (in dollars) is $84,000.

Quizplus · Accepted Answer

The intercept on the least squares line represents the predicted sales when there is no advertising. In this case, the intercept is $84, which means the predicted sales without any advertising is $84,000.

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