Question

Suppose the linear regression line y = 2.1x + 130 predicts sales based on the money spent on advertising. If x represents the dollars spent in advertising, and y represents the company sales in dollars, about how much can the company expect in sales if it spends $50 in advertising?

Answer 1

To estimate the company's sales based on the linear regression equation y = 2.1x + 130, we substitute x = $50 into the equation.

y = 2.1 * 50 + 130 = 105 + 130 = $235

Therefore, the company can expect sales of approximately $235 if it spends $50 on advertising. The correct answer is option D.

trust me i just did the cst

Answer 2

We have here a simple linear regression since it involves 1 dependent variable and 1 independent variable. Linear regression is used to present the relationship between variables. In the problem, given the equation y = 2.1x + 130, we are looking for the amount  the company expect in sales if it spends $50 in advertising? We will have a direct substitution on the given equation using x = $50.The answer will be $235  - it is the expected sales at $50 spent on advertising .