A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation y = 50,000 + 6x.

The above equation implies that an:

A. increase of $6 in advertising is associated with an increase of $6,000 in sales.

B. increase of $1 in advertising is associated with an increase of $6 in sales.

C. increase of $1 in advertising is associated with an increase of $56,000 in sales.

D. increase of $1 in advertising is associated with an increase of $6,000 in sales.

Question

Mathematics

Ellen Donovan

8 July, 23:42

A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation y = 50,000 + 6x.

The above equation implies that an:

A. increase of $6 in advertising is associated with an increase of $6,000 in sales.

B. increase of $1 in advertising is associated with an increase of $6 in sales.

C. increase of $1 in advertising is associated with an increase of $56,000 in sales.

D. increase of $1 in advertising is associated with an increase of $6,000 in sales.

+1

Answers (1)

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Kieran Nolan · Answer 1

D. increase of $1 in advertising is associated with an increase of $6,000 in sales.

Step-by-step explanation:

Every dollar in advertisting is multiply by 6 in the equation, but every unit in y represent $1000. That means that $1 1n advertisting is multiply by 6 and then by $1000, that is $1 in advertisting = $6000 in sales.