Exhibit 14-4
Regression analysis was applied between sales data (Y in $1,000s) and advertising data (x in $100s) and the following information was obtained. = 12 + 1.8 x
n = 17
SSR = 225
SSE = 75
S b1 = 0.2683
-Refer to Exhibit 14-4. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales (in dollars) is
A)$66,000
B)$5,412
C)$66
D)$17,400

Question

Exhibit 14-4
Regression analysis was applied between sales data (Y in $1,000s) and advertising data (x in $100s) and the following information was obtained.  = 12 + 1.8 x
n = 17
SSR = 225
SSE = 75
S b1 = 0.2683
-Refer to Exhibit 14-4. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales (in dollars) is
A)$66,000 
B)$5,412 
C)$66 
D)$17,400

Quizplus · Accepted Answer

The point estimate for sales is calculated using the regression equation provided in Exhibit 14-4. If advertising is $3,000, substitute this value into the equation to find the estimated sales, which results in $66,000.

Exhibit 14-4 Regression Analysis Was Applied Between Sales Data (Y in $1,000s)