A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line: = 60 + 5x. This implies that an increase of $1 in advertising is expected to result in an increase of $65 in sales.

Question

A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line:  = 60 + 5x. This implies that an increase of $1 in advertising is expected to result in an increase of $65 in sales.

Quizplus · Accepted Answer

An increase of $1 in advertising is expected to result in an increase of $5 in sales, not $65 according to the given least squares line.

A Regression Analysis Between Sales (In $1000) and Advertising (In