Question

An advertising agent who created a regression model using amount spent on advertising to predict annual Sales for a company made these two statements. Assuming the calculations were done correctly, explain what is wrong with each interpretation.
a) My R2 of 93% shows that this linear model is appropriate.
b) If this company spends $1.5 million on advertising, then annual sales will be $10 million.


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  • CreatedMay 14, 2015
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