Data were collected on monthly sales revenues (in $1000s) and monthly advertising expenditures ($100s) for a sample of drug stores. the regression line relating revenues (y) to advertising expenditure (x) is estimated to be modifyingabove y with caret equals negative 48.3 plus 9.00 xy=-48.3+9.00x. what is the interpretation of the slope?

Question

Mathematics

Haven Buchanan

8 April, 04:57

Data were collected on monthly sales revenues (in $1000s) and monthly advertising expenditures ($100s) for a sample of drug stores. the regression line relating revenues (y) to advertising expenditure (x) is estimated to be modifyingabove y with caret equals negative 48.3 plus 9.00 xy=-48.3+9.00x. what is the interpretation of the slope?

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Pamela Orr · Answer 1

Interpretation: For every $100 additional spent on advertising, the monthly sales revenue drops by $48.30. Personally I'd expect that the sales revenue increases with every $100 spent on ads.