A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line: = 32 + 8X. This implies that an increase of $1 in advertising is expected to result in an increase of $40 in sales.

Question

A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line:  = 32 + 8X. This implies that an increase of $1 in advertising is expected to result in an increase of $40 in sales.

Quizplus · Accepted Answer

An increase of $1 in advertising is expected to result in an increase of $8 in sales, not $40. The statement in the question is incorrect.

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