Alan Bissell,a market analyst for City Sound Online Mart,is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's),and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3,1 = other).Regression analysis of the data yielded the following tables. For a 'other' download formats with 10,000 website visitors,Alan's model predicts annual sales of heavy metal song downloads of ________________.
A) $2,100,000
B) $524,507
C) $533,333
D) $729,683
E) $210,000

Question

Alan Bissell,a market analyst for City Sound Online Mart,is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's),and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3,1 = other).Regression analysis of the data yielded the following tables.  For a 'other' download formats with 10,000 website visitors,Alan's model predicts annual sales of heavy metal song downloads of ________________.
A) $2,100,000 
B) $524,507 
C) $533,333 
D) $729,683 
E) $210,000

Quizplus · Accepted Answer

Using the regression equation from the table (y = 0.533 + 0.05x1 + 0.296x2), we substitute the values for other format (x2 = 1) and 10,000 website visitors (x1 = 10) and solve for y: 
y = 0.533 + 0.05(10) + 0.296(1) = $0.533 + $0.5 + $0.296 = $1.33 million (in $1,000,000's)
Therefore, the answer is C, $533,333.

Alan Bissell,a Market Analyst for City Sound Online Mart,is Analyzing