A Local Tire Dealer Wants to Predict the Number of Tires

question 72

Multiple Choice

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars) .The equation of the least squares line is, = 3 + 1x. Provide a managerial interpretation of the estimated slope.

• A)As sales of tires increase by 1000,we expect advertising expenditures to increase by $1000.
• B)If there is no advertising,the sales are expected to be 3000 tires.
• C)For every additional thousand dollars in advertising expenditures,we should expect to sell an additional 1000 tires.
• D)For every additional thousand dollars in advertising expenditures,we should expect to sell and additional 3000 tires.

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Definitions:

Transformation

In general terms, the process of changing in form, appearance, nature, or character.

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The smallest distinguishable sound elements in a language that differentiate meaning, known as phonemes.

Phonemes

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