Regression Analysis Was Applied Between Sales Y in $1,000) and Advertising

question 47

Multiple Choice

Regression analysis was applied between sales Y in $1,000) and advertising X in $100) , and the following estimated regression equation was obtained. $\hat { Y }$ = 80 + 6.2 X
Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales in dollars) is

• A) $62,080
• B) $142,000
• C) $700
• D) $700,000

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Definitions:

Compounded Monthly

The process of calculating interest on the initial principal and the accumulated interest from previous periods monthly.

Amortized

The steady decrease of an owed sum through consistent payments towards both the interest and the principal over a set duration.

Total Debt Service Ratio

A debt measurement ratio that calculates an individual's total debt payments relative to their gross income.

Gross Monthly Income

The total amount of income earned in a month before any deductions or taxes are applied.