A regression analysis between sales (in $1000)and advertising (in $)resulted in the following least squares line: = 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:  = 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

An increase of $1 in advertising is expected to result in an increase of $8 in sales, as indicated by the slope coefficient of 8 in the least squares line. The statement in the question that implies an increase of $1 in advertising is expected to result in an increase of $40 in sales is incorrect.

A Regression Analysis Between Sales (In $1000)and Advertising (In $)Resulted