A Regression Analysis Between Sales Y in $1000) and Advertising $\hat { Y }$

question 79

Multiple Choice

A regression analysis between sales Y in $1000) and advertising X in dollars) resulted in the following equation $\hat { Y }$ = 30,000 + 4 X
The above equation implies that an

• A) increase of $4 in advertising is associated with an increase of $4,000 in sales
• B) increase of $1 in advertising is associated with an increase of $4 in sales
• C) increase of $1 in advertising is associated with an increase of $34,000 in sales
• D) increase of $1 in advertising is associated with an increase of $4,000 in sales

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Definitions:

ANOVA Table

A table that summarizes the output and relevant statistical tests of an analysis of variance, which compares means among groups.

Variation

The degree of dispersion or spread in a set of values, indicating how much individual data points differ from the mean.

ANOVA Methods

Statistical techniques used to compare the means of three or more samples, investigating whether at least one sample mean differs from the others.

Random Samples

Random samples are selections made in such a way that each member of the population has an equal chance of being included, ensuring the sample's representativeness.