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 .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

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  .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.

Quizplus · Accepted Answer

The slope of the regression line is 9. This means that for every increase of $100 in advertising expenditure, there is a predicted increase of $9,000 in sales revenue.

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