Question

Which statement below best interprets the regression slope coefficient?

A. For each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year increases by $11.71.
B. For each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year decreases by $2,152.26.
C. For each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year decreases by $11.71.
D. For each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year increases by $2,152.26.

Answer 1

The regression slope coefficient indicates that for each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year decreases by $11.71.

Step-by-step explanation:

The correct statement that best interprets the regression slope coefficient is:

Option C: For each additional mile a customer is from the corporate headquarters, the average total dollar volume of business for the year decreases by $11.71.

In regression analysis, the slope coefficient measures the change in the dependent variable for each one unit increase in the independent variable. In this case, the independent variable is the distance from the corporate headquarters and the dependent variable is the total dollar volume of business for the year. Thus, for each additional mile a customer is from the headquarters, the average total dollar volume of business for the year decreases by $11.71.