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Valentin [98]
3 years ago
14

The director of marketing at a large company wants to determine if the amount of money spent on internet marketing is a good pre

dictor of company profit. She fits a least-squares regression line to 20 months of data and computes the following regression line:
Profit = 372.6 + 17.2(advertising dollars)

What is the value of the residual for advertising dollars spent equal to $1,020 and Profit equal to $17,500? Round to the nearest integer.
Mathematics
1 answer:
vova2212 [387]3 years ago
8 0
Given:
Profit = 17,500
advertising dollar = 1,020

regression line:

Profit = 372.60 + 17.2(advertising dollar)
17,500 = 372.60 + 17.2(1020)
17,500 = 372.60 + 17,544
17,500 = 17,916.60

There is a residual value of 416.60. 

17,916.60 - 17,500 = 416.60
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