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

question 89

Multiple Choice

A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: $\hat { y }$ = 30,000 + 4x

The above equation implies that an

• A) increase of $4 in advertising is associated with an increase of $4000 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 $4000 in sales.

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Definitions:

Central Nervous System

Comprises the brain and spinal cord, responsible for processing information and controlling most functions of the body and mind.

Somatic

Pertaining to the body, especially as distinct from the mind or the environment.

Autonomic

Relating to the part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion.

Sympathetic

Refers to the part of the autonomic nervous system that accelerates heart rate, constricts blood vessels, and raises blood pressure.