A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).The equation of the least squares line is, = 3 + 1x. Provide a managerial interpretation of the estimated y intercept.
A)With no advertising dollars,we should expect to sale 3 tires.
B)If there is no advertising,the sales are expected to be 3000 tires.
C)For every thousand dollars in advertising expenditures,we should expect to sell 1000 tires.
D)For every thousand dollars in advertising expenditures,we should expect to sell 3000 tires.

Question

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).The equation of the least squares line is,  = 3 + 1x. Provide a managerial interpretation of the estimated y intercept.
A)With no advertising dollars,we should expect to sale 3 tires. 
B)If there is no advertising,the sales are expected to be 3000 tires. 
C)For every thousand dollars in advertising expenditures,we should expect to sell 1000 tires. 
D)For every thousand dollars in advertising expenditures,we should expect to sell 3000 tires.

Quizplus · Accepted Answer

The Answer of A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).The equation of the least squares line is,  = 3 + 1x. Provide a managerial interpretation of the estimated y intercept.
A)With no advertising dollars,we should expect to sale 3 tires. 
B)If there is no advertising,the sales are expected to be 3000 tires. 
C)For every thousand dollars in advertising expenditures,we should expect to sell 1000 tires. 
D)For every thousand dollars in advertising expenditures,we should expect to sell 3000 tires.

A Local Tire Dealer Wants to Predict the Number of Tires