The information below may be used in several questions Dats wore eollected on mo

Question

The information below may be used in several questions Dats wore eollected on monthly saies revenue in $1000s) and monthly advartising egrension ine relating revenue (V) to advertising spend 00 is found to be 48 9.0 The correat interprotation of the slope of the regression line is that for each adäitional O $100 spent on advertising. prodicted salos revenue inoreenes by $9000 O$1000 in sales revenun, advertining expendituren decrease by $48.30 O $100 spent on advertising, predicted salos reveue deoreases by $9000 C S100 in sales revenue, odvertising e pondeures decrease by ??30. O St spent on advertising, predicted sales revenun inceases by $9000 7

Explanation / Answer

The regression line is
ycap = -48.3 + 9.00x

x represents the advertising spend in ($100)
Here slope is 9

This means that for every 1 ($100) unit increase in advertising spend, revenue increases by 9 ($9000) units

Hence correct interpretation is
$100 spent on advertising, predicated sales revenue decreases by $9000

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