2. A small business hires a consultant to predict the value of weekly sales of their product if their weekly advertising is increased to $900 per week. The consultant takes a record of how much the firm spent on advertising per week and the corresponding weekly sales over the past six months. The consultant writes "Over the past six months the average weekly expenditure on advertising has been $500 and average weekly sales have been $10,000. Based on the results of a simple linear regression, I predict sales will be $12,000 if $900 per week is spent on advertising." (a) What is the estimated simple regression used by the consultant to make this prediction? (b) Sketch a graph of the estimated regression line. Locate the average weekly values on the graph.
2. A small business hires a consultant to predict the value of weekly sales of their product if their weekly advertising is increased to $900 per week. The consultant takes a record of how much the firm spent on advertising per week and the corresponding weekly sales over the past six months. The consultant writes "Over the past six months the average weekly expenditure on advertising has been $500 and average weekly sales have been $10,000. Based on the results of a simple linear regression, I predict sales will be $12,000 if $900 per week is spent on advertising." (a) What is the estimated simple regression used by the consultant to make this prediction? (b) Sketch a graph of the estimated regression line. Locate the average weekly values on the graph.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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#2 A,B
Transcribed Image Text:2. A small business hires a consultant to predict the value of weekly sales of their product
if their weekly advertising is increased to $900 per week. The consultant takes a
record of how much the firm spent on advertising per week and the corresponding
weekly sales over the past six months. The consultant writes "Over the past six
months the average weekly expenditure on advertising has been $500 and average
weekly sales have been $10,000. Based on the results of a simple linear regression, I
predict sales will be $12,000 if $900 per week is spent on advertising."
(a) What is the estimated simple regression used by the consultant to make this
prediction?
(b) Sketch a graph of the estimated regression line. Locate the average weekly values
on the graph.
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