Regression Analysis Was Applied Between Sales (In $1000s) and Advertising $\hat { y }$

question 8

Multiple Choice

Regression analysis was applied between sales (in $1000s) and advertising (in $100s) , and the following regression function was obtained. ? $\hat { y }$ = 500 + 4x
?
Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales (in dollars) is _____.

• A) $900
• B) $900,000
• C) $40,500
• D) $505,000

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Definitions:

Measures of Variability

Statistical metrics that describe the spread or dispersion within a data set, including range, variance, and standard deviation.

Coefficient of Variation

A normalized measure of the dispersion of a probability distribution or frequency distribution, often used to compare the degree of variation from one data series to another.

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much variation there is from the average.

Standard Deviations

An indicator of how widely values in a dataset are spread out from the average, showing the degree to which these numbers vary from their mean.