If we fit a linear model for the effect of advertisement money spent (doliars) o

Question

If we fit a linear model for the effect of advertisement money spent (doliars) on the sales revenue (dollars) and find the best fit slope is ?-1.2 and a 99% confidence interval for the slope is given by (1.1, 1.3) then which of the folowing is a validinterpretation of this model? O Not enough information O If we spend 10 dollars on advertising we can predict earnings of between 11 and 13 dollars in sales O For each dollar we spend on advertising we can expect to yield somewhere between 1.1-1.3 dollars in return on average. Each dollar we make in sales revenue costs somewhere between 1.1-1.3 dollars in advertising costs on average. O

Explanation / Answer

Option 3 is correct

For each dollar we spend on advertising we can expect to yield somewhere between 1.1-1.3 dollars in return on average .

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.