Data were collected on monthly sales revenues (in $1,000s) and monthly advertising expenditures ($100s) for a sample of drug stores.The regression line relating revenues (Y) to advertising expenditure (X) is estimated to be
)The correct interpretation of the slope is that for each additional ____________________________ .
A)$1 spent on advertising, predicted sales revenue increases by $9,000
B)$100 spent on advertising, predicted sales revenue increases by $9,000
C)$100 spent on advertising, predicted sales revenue decreases by $9,000
D)$1,000 in sales revenue, advertising expenditures decrease by $48.30
E)$100 in sales revenue, advertising expenditures decrease by $48.30

Question

Quizplus · Accepted Answer

The slope in a regression line represents the change in the dependent variable (Y, which is sales revenue in this case) for a one-unit increase in the independent variable (X, which is advertising expenditure). Since advertising expenditure is measured in $100s, a slope of $9,000 means for each additional $100 spent on advertising, predicted sales revenue increases by $9,000.

Data Were Collected on Monthly Sales Revenues (In $1,000s) and Monthly