A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model: Sales = β0 +β1 Advertising + ε. The following ANOVA table shows a portion of the regression results.
Which of the following is true?
A) If Advertising goes up by $100, then we predict Sales to go up by $2,880.
B) If Sales go up by $100, then we predict Advertising to go up by $2,880.
C) If Advertising goes up by $100, then we predict Sales to go up by $4,298.
D) If Sales go up by $100, then we predict Advertising to go up by $4,298.
Correct Answer:
Verified
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