Interpret a Linear Regression Equation and Use It to Make

question 36

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 predicted
Sales revenue for a month in which $1,000 was spent on advertising is

• A) $50,000.
• B) $851.70.
• C) $8,951.70.
• D) $41,700.
• E) $90,000.

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Definitions:

Regulated

Subject to rules, laws, or controls put in place by governing bodies to maintain order, safety, or standards.

Homeowners

Individuals who own the home in which they live, holding title to the property.

Father Charles Coughlin

A controversial Roman Catholic priest from Canada who became famous in the United States for his politically charged radio broadcasts in the 1930s.

Listeners

Individuals who actively engage in the act of listening, often implying an audience or recipients in communication scenarios.