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 predicted
Sales revenue for a month in which $1,000 was spent on advertising is
A) $50,000.
B) $851.70.
C) $8,951.70.
D) $41,700.
E) $90,000.

Question

Quizplus · Accepted Answer

The Answer of 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 predicted
Sales revenue for a month in which $1,000 was spent on advertising is
A) $50,000.
B) $851.70.
C) $8,951.70.
D) $41,700.
E) $90,000.

Data Were Collected on Monthly Sales Revenues (In $1,000s) and Monthly