Question

A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: = 75 + 6x. This implies that if advertising is $800, then the predicted amount of sales (in dollars) is:
A) $4875
B) $123,000
C) $487,500
D) $12,300

Answer 1

the function of sales (in $1000) f(x) is given by 75+6x where x is advertising dollars in $100.

f(x) = 75+6x
when advertising dollars = $800, x=8
substituting in the above equation,
f(x) = 75+6*8 = 123
So sales = 123 * $1000 = ??

Answer 2

Thank you, MathMate

Answer 3

You're welcome!

Answer 4

judy has a flower shop and is considering increasing her advertising budget. she has been advertising in the local newspaper for the past five weeks and the following table reveals to her that her sales are directly tied to the amount of money she spends on advertising. use a linier regression analysis for the volume of sales.