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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