A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line: $\hat{y}$ = 75 +6x.This implies that if advertising is $800,then the predicted amount of sales (in dollars)is:
A) $4875.
B) $123,000.
C) $487,500.
D) $12,300.

Question

Quizplus · Accepted Answer

The advertising amount of $800 is equivalent to 8 units of $100. Plugging x = 8 into the equation $\hat{y} = 75 + 6x$, we get $\hat{y} = 75 + 6(8) = 123$. Since $\hat{y}$ is in $1000, the predicted sales in dollars is $123,000.

A Regression Analysis Between Sales (In $1000)and Advertising (In $100)resulted y^\hat{y}y^​

A Regression Analysis Between Sales (In $1000)and Advertising (In $100)resulted $\hat{y}$