In the following equation $\hat{y}$ = 30,000 + 4x with given sales (y in $500) and marketing (x in dollars), what does the equation imply?
A) An increase of $1 in marketing is associated with an increase of $32,000 in sales.
B) An increase of $1 in marketing is associated with an increase of $2,000 in sales.
C) An increase of $4 in marketing is associated with an increase of $2,000 in sales.
D) An increase of $4 in marketing is associated with an increase of $32,000 in sales.

Question

Quizplus · Accepted Answer

The equation implies that for every $1 increase in marketing (x), sales (?) increase by $4. Since sales are measured in $500 units, a $4 increase in sales corresponds to an increase of $2,000 ($4 * $500).

In the Following Equation y^\hat{y}y^​ = 30,000 + 4x with Given Sales (Y in $500)

In the Following Equation $\hat{y}$ = 30,000 + 4x with Given Sales (Y in $500)