A regression analysis between sales (in $1000) and advertising (in $100) yielded the least squares line $\hat { y }$ = 77 +8x. This implies that if advertising is $600, then the predicted amount of sales (in dollars) is $4877.

Question

Quizplus · Accepted Answer

The predicted amount of sales for $600 in advertising (which is $600/100 = 6 in the units used in the regression equation) would be $\hat { y }$ = 77 + 8(6) = 77 + 48 = 125. Since the sales are in $1000, this translates to $125,000, not $4877.

A Regression Analysis Between Sales (In $1000) and Advertising (In y^\hat { y }y^​

A Regression Analysis Between Sales (In $1000) and Advertising (In $\hat { y }$