QUESTION 1

Regression analysis was applied between sales (in $1000s) and advertising (in $100s).Let y denote sales and x denote advertising. The following regression function was obtained.

y_hat=80+6.2x

Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales (in dollars) is _____.

QUESTION 2

Regression analysis was applied between sales (in $1000s) and advertising (in $100s).Let y denote sales and x denote advertising. The following regression function was obtained.

y_hat=80+6.2x

Based on the above estimated regression line, if advertising changes by$1000, then the changes in thepoint estimate for sales (in dollars) is_____.

QUESTION 3

A regression analysis between sales (y in $1000s) and price (x in dollars) resulted in the following equation:

y_hat=50,0008x

The above equation implies that an increase of _____.

		$1 in price is associated with a decrease of $8 in sales
		$8 in price is associated with an increase of $8,000 in sales
		$1 in price is associated with a decrease of $42,000 in sales
		$2 in price is associated with a decrease of $16,000 in sales