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.
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.
