A Regression Analysis Between Sales (In $1000) and Advertising (In

question 23

Multiple Choice

A regression analysis between sales (in $1000) and advertising (in $) resulted in the following least squares line: = 80,000 + 5x. This implies that:

• A) an increase of $1 in advertising is expected, on average, to result in an increase of $5 in sales
• B) an increase of $5 in advertising is expected, on average, to result in an increase of $5,000 in sales
• C) an increase of $1 in advertising is expected, on average, to result in an increase of $80,005 in sales
• D) an increase of $1 in advertising is expected, on average, to result in an increase of $5,000 in sales
• E) all of these