Question

Your company asked you to analyze the investment of their advertising campaign. You create a scatterplot graph of the advertising dollars spent on advertising x and compare it to the revenue generated y for January to December of the campaign. You find the equation of the trend line to be y = 2.53c + 43. Predict the revenue generated if your company invests $200 in advertising

Answer 1

To predict the revenue generated if the company invests $200 in advertising, we can substitute the value of c = 200 into the equation of the trend line.

y = 2.53c + 43

Substituting c = 200:

y = 2.53(200) + 43
y = 506 + 43
y = 549

According to the trend line equation, the predicted revenue generated if the company invests $200 in advertising is $549.