Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained. = 500 + 4x Based on the above estimated regression line if advertising is $10,000, then the point estimate for sales (in dollars) is
A)$900
B)$900,000
C)$40,500
D)$505,000

Question

Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was obtained.  = 500 + 4x Based on the above estimated regression line if advertising is $10,000, then the point estimate for sales (in dollars) is
A)$900 
B)$900,000 
C)$40,500 
D)$505,000

Quizplus · Accepted Answer

The Answer is B

Regression Analysis Was Applied Between Sales (In $1000) and Advertising