Interpret a Linear Regression Equation and Use It to Make

question 23

Multiple Choice

Interpret a linear regression equation and use it to make a prediction.
-Data were collected on monthly sales revenues (in $1,000s) and monthly advertising
Expenditures ($100s) for a sample of drug stores. The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be yˆ = −48.3 + 9.00x . The correct
Interpretation of the slope is that for each additional

• A) $1 spent on advertising, predicted sales revenue increases by $9,000.
• B) $100 spent on advertising, predicted sales revenue increases by $9,000.
• C) $100 spent on advertising, predicted sales revenue decreases by $9,000.
• D) $1,000 in sales revenue, advertising expenditures decrease by $48.30.
• E) $100 in sales revenue, advertising expenditures decrease by $48.30.

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