A regression analysis between sales (Y in $1000) and advertising (X in dollars)
ID: 3128288 • Letter: A
Question
A regression analysis between sales (Y in $1000) and advertising (X in dollars) resulted in the following equation
= 30,000 + 4 X
The above equation implies that an
increase of $4 in advertising is associated with an increase of $4,000 in sales
increase of $1 in advertising is associated with an increase of $4 in sales
increase of $1 in advertising is associated with an increase of $34,000 in sales
increase of $1 in advertising is associated with an increase of $4,000 in sales
increase of $4 in advertising is associated with an increase of $4,000 in sales
increase of $1 in advertising is associated with an increase of $4 in sales
increase of $1 in advertising is associated with an increase of $34,000 in sales
increase of $1 in advertising is associated with an increase of $4,000 in sales
Explanation / Answer
Interpretation: The regression equation is 30,000+4X indicates that the increase of $1 in advertising is associated with an increase of $4,000 in sales. The fourth choice is correct in this case.
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