A regression analysis between sales (in $) and advertising (in $) resulted in the following least squares line: $\hat { y } = 60 + 5 x$ . This implies that an increase of $1 in advertising is associated with an increase of $60 in sales.

Question

Quizplus · Accepted Answer

The correct interpretation is that an increase of $1 in advertising is associated with an increase of $5 in sales, as indicated by the coefficient of $x$ in the equation.

A Regression Analysis Between Sales (In $) and Advertising (In y^=60+5x\hat { y } = 60 + 5 xy^​=60+5x

A Regression Analysis Between Sales (In $) and Advertising (In $\hat { y } = 60 + 5 x$