Exhibit 12-4
Regression analysis was applied between sales data Y in $1,000s) and advertising data x in $100s) and the following information was obtained.
= 12 + 1.8 x
$\hat { Y }$ n = 17
SSR = 225
SSE = 75
Sb₁ = 0.2683
-Refer to Exhibit 12-4. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales in dollars) is
A) $66,000
B) $5,412
C) $66
D) $17,400

Question

Exhibit 12-4
Regression analysis was applied between sales data Y in $1,000s) and advertising data x in $100s) and the following information was obtained.
= 12 + 1.8 x
 $\hat { Y }$ n = 17
SSR = 225
SSE = 75
Sb₁ = 0.2683
-Refer to Exhibit 12-4. Based on the above estimated regression equation, if advertising is $3,000, then the point estimate for sales in dollars) is
A) $66,000
B) $5,412
C) $66
D) $17,400

Quizplus · Accepted Answer

The regression equation is $\hat{Y} = 12 + 1.8x$. For advertising of $3,000, x = 30 (since x is in $100s). Substitute x = 30 into the equation: $\hat{Y} = 12 + 1.8(30) = 66$. Since Y is in $1,000s, the point estimate for sales is $66,000.

Exhibit 12-4 Regression Analysis Was Applied Between Sales Data Y Y^\hat { Y }Y^

Exhibit 12-4
Regression Analysis Was Applied Between Sales Data Y $\hat { Y }$