A regression analysis between sales (in $1000)and advertising (in $)resulted in the following least squares line: $\hat { Y }$
= 32 + 8X.This implies that an increase of $1 in advertising is expected to result in an increase of $40 in sales.

Question

A regression analysis between sales (in $1000)and advertising (in $)resulted in the following least squares line: $\hat { Y }$ 
= 32 + 8X.This implies that an increase of $1 in advertising is expected to result in an increase of $40 in sales.

Quizplus · Accepted Answer

The slope of the least squares line is 8, which means an increase of $1 in advertising is expected to result in an increase of $8 in sales, not $40.

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 $\hat { Y }$