Exhibit 14-3
Regression analysis was applied between sales data (in $1,000s) and advertising data (in $100s) and the following information was obtained.
-Refer to Exhibit 14-3. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales (in dollars) is
A)$66,000
B)$5,412
C)$66
D)$17,400

Question

Exhibit 14-3
Regression analysis was applied between sales data (in $1,000s) and advertising data (in $100s) and the following information was obtained. 
-Refer to Exhibit 14-3. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales (in dollars) is
A)$66,000 
B)$5,412 
C)$66 
D)$17,400

Quizplus · Accepted Answer

The point estimate for sales is calculated using the regression equation. If the regression equation is in the form Sales = a + b(Advertising), and given that advertising is $3,000, you substitute $3,000 into the equation to find the estimated sales. The correct choice is based on this calculation.

Exhibit 14-3 Regression Analysis Was Applied Between Sales Data (In $1,000s) and $1,000s)