A graph titled Monthly Sales and Advertising Costs has Advertising Costs (1,000 dollars) on the x-axis and sales (1,000 dollars) on the y-axis. A line goes through points (6.4, 117) and (6.6, 120).

Question

The slope of the trend line is 15. What does that mean in regard to the data of the scatterplot? Check all that apply.
The slope represents the rate of change of the data.
Advertising costs increase $15,000 as sales increase by $1,000.
Sales increase $15,000 as ads increase by $1,000.
A positive slope infers a negative correlation.
A positive slope infers a positive correlation.

Answer 1

Given the information about the graph titled "Monthly Sales and Advertising Costs," with a slope of 15, let's analyze the statements regarding the data of the scatterplot:

1. The slope represents the rate of change of the data.

   • True. The slope indicates how much sales change relative to changes in advertising costs.

2. Advertising costs increase $15,000 as sales increase by $1,000.

   • False. The slope of 15 means that for each additional $1,000 spent on advertising, sales increase by $15,000, not the other way around.

3. Sales increase $15,000 as ads increase by $1,000.

   • True. The slope of 15 indicates that an increase of $1,000 in advertising costs leads to an increase of $15,000 in sales.

4. A positive slope infers a negative correlation.

   • False. A positive slope indicates a positive correlation; as one variable increases, the other also tends to increase.

5. A positive slope infers a positive correlation.

   • True. A positive slope indicates that there is a positive correlation between advertising costs and sales.

In summary, the correct statements to check are:

• The slope represents the rate of change of the data.
• Sales increase $15,000 as ads increase by $1,000.
• A positive slope infers a positive correlation.