A Regression Analysis Between Sales (In $1000) and Advertising (In $\hat { y } = 75 + 6 x$

question 136

Multiple Choice

A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: $\hat { y } = 75 + 6 x$ . This implies that if advertising is $800, then the predicted amount of sales (in dollars) is:

• A)$4875
• B)$123,000
• C)$487,500
• D)$12,300

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Definitions:

Investment

The purchase of goods, stocks, or other assets in the hope of generating a financial return.

Compounded Quarterly

Compounded quarterly refers to the calculation and addition of interest to the principal sum of an investment or loan on a quarterly basis, accelerating the growth of the investment's value.

RRSP

A Registered Retirement Savings Plan is a Canadian account for holding savings and investment assets, aimed at retirement planning, with certain tax benefits.

Payments

Definition: The act of transferring money to settle a debt or account balance.