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.
Correct Answer:
Verified
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