A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line: $\hat { Y }$
= 84 +7X.This implies that if there is no advertising,then the predicted amount of sales (in dollars)is $84,000.

Question

A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line: $\hat { Y }$ 
= 84 +7X.This implies that if there is no advertising,then the predicted amount of sales (in dollars)is $84,000.

Quizplus · Accepted Answer

The intercept of the regression line (84) represents the predicted sales in $1000 when advertising (X) is zero. Converting $1000 to dollars gives $84,000.

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 $\hat { Y }$