Question

A regression analysis between sales (in thousands of dollars) and advertising (in hundreds of dollars) resulted in the following least squares line: ˆy = 75 + 6x. This implies that if advertising is 800 dollars, then the predicted amount of sales (in dollars) is:

Answer 1

For this case we have the following model given :

`\hat y = 75 + 6x`

And we know that y represent the sales (in thousands of dollars) and x the advertising (in hundreds of dollars) . And for this case we can use x =800/100=8 and replacing we got:

`\hat y = 75 +6*8= 123`

That would be the predicted value for sales in dollars would be 123*1000= 123000

Explanation:

For this case we have the following model given :

`\hat y = 75 + 6x`

And we know that y represent the sales (in thousands of dollars) and x the advertising (in hundreds of dollars) . And for this case we can use x =800/100=8 and replacing we got:

`\hat y = 75 +6*8= 123`

That would be the predicted value for sales in dollars would be 123*1000= 123000