A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line: = 84 +7X.This implies that if there is no advertising,then the predicted amount of sales (in dollars)is $84,000.

Question

A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line:  = 84 +7X.This implies that if there is no advertising,then the predicted amount of sales (in dollars)is $84,000.

Quizplus · Accepted Answer

The intercept term in the least squares line represents the predicted amount of sales when advertising is zero. In this case, the intercept is $84, which corresponds to $84,000 in sales. Therefore, the statement is true.

A Regression Analysis Between Sales (In $1000)and Advertising (In $100)resulted