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A Regression Analysis Between Sales (In $1000)and Advertising (In $)Resulted y^\hat{y}

Question 54

Multiple Choice

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


A) increase of $1 in advertising is expected to result in an increase of $5 in sales.
B) increase $5 in advertising is expected to result in an increase of $5,000 in sales.
C) increase of $1 in advertising is expected to result in an increase of $80,005 in sales.
D) increase of $1 in advertising is expected to result in an increase of $5,000 in sales.

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