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A business owner needs to sell at least 150.000 units of a product per month in order for revenue to sustain the business and the owner's personal expenses. The business owner is trying to use the amount of money spent per month in advertising to predict the number of units of the product sold in a month, The business owner gathered data on the amount of money spent on advertising and the number of units of product sold over the past 10 months. The graph below shows the data collected, along with the best-fit line, which has an value of 0.47. 20 Units Sold (in thousands) 210 200 190 180 170 160 150 140 130 120 Amount Spent on Advertising lin hundreds of de 65 6 74 73 The business owner concludes that if at least $7,200 is spent per month in advertising, then at least 150,000 units of the product will sell per month. Is this a valid conclusion? O No, it is not a valid conclusion because the business owner never sold exactly 150,000 units of the product in a month, so the business owner cannot know how much money is needed to spend on advertising to reach 150,000 units sold. O Yes, it is a valid conclusion because the model guarantees that selling at least 150,000 units of the product in a month will cause the business owner to spend at least $7,200 on advertising that month. O No, it is not a valid conclusion because (75,218) is an outlier, which causes predictions made with the best-fit line to be inaccurate. O Yes, it is a valid conclusion because the model predicts that when the business owner spends $7,200 or more on advertising in a month, the number of units of product that will sell will exceed 150,000.

A business owner needs to sell at least 150.000 units of a product per month in order for revenue to sustain the business and the owner's personal expenses. The business owner is trying to use the amount of money spent per month in advertising to predict the number of units of the product sold in a month, The business owner gathered data on the amount of money spent on advertising and the number of units of product sold over the past 10 months. The graph below shows the data collected, along with the best-fit line, which has an value of 0.47. 20 Units Sold (in thousands) 210 200 190 180 170 160 150 140 130 120 Amount Spent on Advertising lin hundreds of de 65 6 74 73 The business owner concludes that if at least $7,200 is spent per month in advertising, then at least 150,000 units of the product will sell per month. Is this a valid conclusion? O No, it is not a valid conclusion because the business owner never sold exactly 150,000 units of the product in a month, so the business owner cannot know how much money is needed to spend on advertising to reach 150,000 units sold. O Yes, it is a valid conclusion because the model guarantees that selling at least 150,000 units of the product in a month will cause the business owner to spend at least $7,200 on advertising that month. O No, it is not a valid conclusion because (75,218) is an outlier, which causes predictions made with the best-fit line to be inaccurate. O Yes, it is a valid conclusion because the model predicts that when the business owner spends $7,200 or more on advertising in a month, the number of units of product that will sell will exceed 150,000.

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A business owner needs to sell at least 150,000 units of a product per month in order for revenue to sustain the business and the owner's personal expenses. The business owner is trying to use the amount of money spent per month in advertising to predict the number of units of the product sold in a month. The business owner gathered data on the amount of money spent on advertising and the number of units of product sold over the past 10 months. The graph below shows the data collected, along with the best-fit line, which has an ? value of 0.47. Units Sold (in thousands). 220 210 200 190 180 170 160 150 140 130 120 Amount Spent on Advertising (in hundreds of dollars) 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 The business owner concludes that if at least $7,200 is spent per month in advertising, then at least 150,000 units of the product will sell per month. Is this a valid conclusion? No, it is not a valid conclusion because the business owner never sold exactly 150,000 units of the product in a month, so the business owner cannot know how much money is needed to spend on advertising to reach 150,000 units sold. Yes, it is a valid conclusion because the model guarantees that selling at least 150,000 units of the product in a month will cause the business owner to spend at least $7,200 on advertising that month. No, it is not a valid conclusion because (75,218) is an outlier, which causes predictions made with the best-fit line to be inaccurate. Yes, it is a valid conclusion because the model predicts that when the business owner spends $7,200 or more on advertising in a month, the number of units of product that will sell will exceed 150,000.
Transcribed Image Text:A business owner needs to sell at least 150,000 units of a product per month in order for revenue to sustain the business and the owner's personal expenses. The business owner is trying to use the amount of money spent per month in advertising to predict the number of units of the product sold in a month. The business owner gathered data on the amount of money spent on advertising and the number of units of product sold over the past 10 months. The graph below shows the data collected, along with the best-fit line, which has an ? value of 0.47. Units Sold (in thousands). 220 210 200 190 180 170 160 150 140 130 120 Amount Spent on Advertising (in hundreds of dollars) 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 The business owner concludes that if at least $7,200 is spent per month in advertising, then at least 150,000 units of the product will sell per month. Is this a valid conclusion? No, it is not a valid conclusion because the business owner never sold exactly 150,000 units of the product in a month, so the business owner cannot know how much money is needed to spend on advertising to reach 150,000 units sold. Yes, it is a valid conclusion because the model guarantees that selling at least 150,000 units of the product in a month will cause the business owner to spend at least $7,200 on advertising that month. No, it is not a valid conclusion because (75,218) is an outlier, which causes predictions made with the best-fit line to be inaccurate. Yes, it is a valid conclusion because the model predicts that when the business owner spends $7,200 or more on advertising in a month, the number of units of product that will sell will exceed 150,000.
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