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

Looking at the regression equation in the table, we have:
Sales = -538.667 + 200.667(Visitors) + 1,732.333(Other)
Substituting Visitors = 10,000 and Other = 1, we get:
Sales = -538.667 + 200.667(10) + 1,732.333(1) = $533,333. Therefore, the predicted annual sales for 'other' download format with 10,000 website visitors is $533,333.

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