Interpret a linear regression equation and use it to make a prediction.
-Data were collected on monthly sales revenues (in $1,000s) and monthly advertising
Expenditures ($100s) for a sample of drug stores. The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be yˆ = −48.3 + 9.00x . The correct
Interpretation of the slope is that for each additional
A) $1 spent on advertising, predicted sales revenue increases by $9,000.
B) $100 spent on advertising, predicted sales revenue increases by $9,000.
C) $100 spent on advertising, predicted sales revenue decreases by $9,000.
D) $1,000 in sales revenue, advertising expenditures decrease by $48.30.
E) $100 in sales revenue, advertising expenditures decrease by $48.30.

Question

Quizplus · Accepted Answer

The Answer of Interpret a linear regression equation and use it to make a prediction.
-Data were collected on monthly sales revenues (in $1,000s) and monthly advertising
Expenditures ($100s) for a sample of drug stores. The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be yˆ = −48.3 + 9.00x . The correct
Interpretation of the slope is that for each additional
A) $1 spent on advertising, predicted sales revenue increases by $9,000.
B) $100 spent on advertising, predicted sales revenue increases by $9,000.
C) $100 spent on advertising, predicted sales revenue decreases by $9,000.
D) $1,000 in sales revenue, advertising expenditures decrease by $48.30.
E) $100 in sales revenue, advertising expenditures decrease by $48.30.

Interpret a Linear Regression Equation and Use It to Make