Asked by tar
a sales manager used linear regression to find the positive linear relationship between advertising expenditures and sales. The amount of advertising expenditures used to generate the regression equation ranged from $8,000 to $45,000.
The sales manager wants to use the equation to predict the amount of sales that can be expected from advertising expenditures of $55,000 and $65,000.
Which would be more reliable, the sales predicted from the $55,000 advertising expenditure or from the $65,000 expenditure? Explain why!
The sales manager wants to use the equation to predict the amount of sales that can be expected from advertising expenditures of $55,000 and $65,000.
Which would be more reliable, the sales predicted from the $55,000 advertising expenditure or from the $65,000 expenditure? Explain why!
Answers
Answered by
economyst
I would have more confidence in the sales at the $55,000 expenditure level. Think it through, then take a shot.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.