The Equation for a Simple Linear Regression That Saw Sales

question 32

Multiple Choice

The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods,and advertising budgets averaging $3,000 over the last 10 periods is:
Y = 3250 + 120x
This indicates that a $1 increase in advertising will increase sales by:

• A)$3370
• B)$250
• C)$120
• D)$1875

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