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 average sales be equal to when 10 salespeople are used?
A)$358,000
B)$463.20
C)$358.00
D)$463,200
E)More information is needed to answer this question.

Question

Quizplus · Accepted Answer

Plug in X=10 in the regression equation: 
Y = 105.2 + 35.8(10) 
Y = 105.2 + 358 
Y = $463,200 
Therefore, the average sales would be $463,200 when 10 salespeople are used.

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