FlatCola Cybersystems analyzed the relationship between its monthly advertising expenses and monthly sales over the last...

 

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FlatCola Cybersystems analyzed the relationship between its monthly advertising expenses and monthly sales over the last two quarters, and obtained the equation SALES = 685,000 +85*ADVERTISING, with a correlation coefficient of r = 0.92. The R-Squared value is 86.4%. Based on these measures, which of the following statements is correct? The variation in monthly advertising expenses explains about 86% of the variation in sales. Predictions about sales will be correct within an 86% confidence interval. The variation in monthly advertising expenses explains about 92% of the variation in sales. Predictions about sales will be correct within a 92% confidence interval. FlatCola Cybersystems analyzed the relationship between its monthly advertising expenses and monthly sales over the last two quarters, and obtained the equation SALES = 685,000 +85*ADVERTISING, with a correlation coefficient of r = 0.92. The R-Squared value is 86.4%. Based on these measures, which of the following statements is correct? The variation in monthly advertising expenses explains about 86% of the variation in sales. Predictions about sales will be correct within an 86% confidence interval. The variation in monthly advertising expenses explains about 92% of the variation in sales. Predictions about sales will be correct within a 92% confidence interval.

Answer rating: 100% (QA)

Introduction Let X and Y be the two random variable then the correlation coefficient between X and Y... View the full answer