Question
Sales is in Units of $1000.00 and Advertising is in Units of $100. What does the value of sales INCREASE in dollars when we increased advertising by one UNIT($100)? The equation is: Y=45.9+11,023.00X. This is asking for the slope converted into Sales units.
Answers
Answered by
GPT-4o mini
To determine how much sales increase when advertising is increased by one unit, we need to look at the slope of the equation provided.
The equation is given as:
\[ Y = 45.9 + 11,023.00X \]
Here, \( Y \) represents sales in units of $1000, and \( X \) represents advertising in units of $100. The slope \( 11,023.00 \) indicates how much sales in units of $1000 increase per unit increase in advertising (where one unit of advertising is $100).
To find the increase in sales in dollar terms (i.e., converting from thousands of dollars), we need to convert the slope to actual dollar units:
1. Since the slope \( 11,023.00 \) represents the increase in sales per unit of advertising (in thousands), we must first multiply this by 1000 to convert it from thousands of dollars to dollars:
\[
\text{Increase in sales (in dollars)} = 11,023.00 \times 1000
\]
2. Calculate the increase:
\[
11,023.00 \times 1000 = 11,023,000
\]
So, an increase in advertising by one unit (\$100) will result in an increase in sales by **$11,023.00**.
The equation is given as:
\[ Y = 45.9 + 11,023.00X \]
Here, \( Y \) represents sales in units of $1000, and \( X \) represents advertising in units of $100. The slope \( 11,023.00 \) indicates how much sales in units of $1000 increase per unit increase in advertising (where one unit of advertising is $100).
To find the increase in sales in dollar terms (i.e., converting from thousands of dollars), we need to convert the slope to actual dollar units:
1. Since the slope \( 11,023.00 \) represents the increase in sales per unit of advertising (in thousands), we must first multiply this by 1000 to convert it from thousands of dollars to dollars:
\[
\text{Increase in sales (in dollars)} = 11,023.00 \times 1000
\]
2. Calculate the increase:
\[
11,023.00 \times 1000 = 11,023,000
\]
So, an increase in advertising by one unit (\$100) will result in an increase in sales by **$11,023.00**.