Suppose that the relationship between sales (Y,in $000)and number of salespeople (X)is represented by the following regression equation: Y = 105.2 + 35.8X.What will be the average contribution to sales of one additional salesperson?
A)$35.80
B)$141,000
C)$35,800
D)$141.00
E)More information is needed to answer this question.

Question

Quizplus · Accepted Answer

The coefficient of X in the regression equation represents the average increase in Y for one unit increase in X. In this case, the coefficient is 35.8, which means that on average, each additional salesperson contributes $35,800 to sales. Therefore, the answer is C.

Suppose That the Relationship Between Sales (Y,in $000)and Number of Salespeople