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

question 38

Multiple Choice

A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: $\hat { y }$ = 50,000 + 6x ?
The above equation implies that an increase of _____.

• A) $6 in advertising is associated with an increase of $6,000 in sales
• B) $1 in advertising is associated with an increase of $6 in sales
• C) $1 in advertising is associated with an increase of $56,000 in sales
• D) $1 in advertising is associated with an increase of $6,000 in sales

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Definitions:

Nuisance

An act, condition, or thing that is illegal because it interferes with the rights of others, specifically in terms of their comfort, health, or safety.

Occupiers' Liability Act

Legislation that outlines the duty of care owed by individuals or entities that control land or buildings to those who enter the premises.

Nonfeasance

The failure to perform an act that one has a duty to perform, often resulting in liability.

Defamation

The act of communicating false statements about a person that injure their reputation.