A regression analysis between sales (in $1000)and advertising (in $)resulted in the following least squares line: $\hat{y}$ = 80,000 + 5x.This implies that an:
A) increase of $1 in advertising is expected to result in an increase of $5 in sales.
B) increase $5 in advertising is expected to result in an increase of $5,000 in sales.
C) increase of $1 in advertising is expected to result in an increase of $80,005 in sales.
D) increase of $1 in advertising is expected to result in an increase of $5,000 in sales.

Question

Quizplus · Accepted Answer

The coefficient of x in the equation is 5, which means for every $1 increase in advertising, sales are expected to increase by $5,000 (since sales are in $1000).

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

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