A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table.

-Sampson and Delilah advertising company is interested in an appropriate mix of print, radio, and television ads for their new client. Steven Nash performs a multiple regression on the effects of dollars spent on each type of media on dollars of sales of product. Nash uses data from the most recent advertising campaigns and develops the following equation:
Y = 254,215 + 6.79 * Print - 1.4 * Radio + 16.87 *Television
The r-squared statistic is 0.77. Which of the following statements is BEST?
A)At a minimum, the client will sell $254,215 worth of product after the new advertising campaign.
B)At a maximum, the client will sell $254,215 worth of product after the new advertising campaign.
C)This equation will be of no use in predicting the amount of sales based on advertising in these media.
D)The client should spend more money on television advertising than on radio advertising.
E)Need more information to answer the question

Question

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature. He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table.
 
-Sampson and Delilah advertising company is interested in an appropriate mix of print, radio, and television ads for their new client. Steven Nash performs a multiple regression on the effects of dollars spent on each type of media on dollars of sales of product. Nash uses data from the most recent advertising campaigns and develops the following equation:
Y = 254,215 + 6.79 * Print - 1.4 * Radio + 16.87 *Television
The r-squared statistic is 0.77. Which of the following statements is BEST?
A)At a minimum, the client will sell $254,215 worth of product after the new advertising campaign. 
B)At a maximum, the client will sell $254,215 worth of product after the new advertising campaign. 
C)This equation will be of no use in predicting the amount of sales based on advertising in these media. 
D)The client should spend more money on television advertising than on radio advertising. 
E)Need more information to answer the question

Quizplus · Accepted Answer

The coefficient for television advertising is positive and larger than that for radio, suggesting that spending more on television ads is likely to increase sales more than spending on radio ads.

A Well-Educated Lumberjack Decides to Use Linear Regression to Predict