Question

A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line: Y= 32 + 8X. This implies that an increase of $1 in advertising is expected to result in an increase of $40 in sales.( why? could you help explain to me thank you so much)

Answer 1

Answer:

Step-by-step explanation: This is a question under linear regression analysis.

The question is trying to relate sales (in $1000) and and advertising.

Both sales and advertising are variables and are connected by the equation

Y = 32x + 8

Which is a linear regression equation of 2 variables.

Where x is the independent variable which represents advertising in this case and Y is the dependent variable which represents sales.

At $1 of adverts, we have $40 of sales.

We just simply put the fact that x = $1 (advertising) into the linear regression equation, we have the value of Y ( sales)

Y = 32(1) + 8

Y = 32 + 8

Y = $40.