A Regression Analysis Between Sales (In $1000s) and Price (In $\hat { y}$

question 22

Multiple Choice

A regression analysis between sales (in $1000s) and price (in dollars) resulted in the following equation: ? $\hat { y}$ = 50,000 ? 8x
?
The above equation implies that an increase of _____.

• A) $1 in price is associated with a decrease of $8 in sales
• B) $8 in price is associated with an increase of $8,000 in sales
• C) $1 in price is associated with a decrease of $42,000 in sales
• D) $1 in price is associated with a decrease of $8,000 in sales