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A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable (Sales in thousands of dollars). Further assume that he has checked the assumptions and all four assumptions seem reasonable. The estimated model is the following: Predicted sales (thousands of dollars) = 100+9x (where x = amount spent on advertisement in thousands of dollars). Some additional helpful information: The range of the values of the explanatory variable are between $10,000 and $150,000 Assume this manager just received information that the current company plan is to spend $175,000 on advertising. This manager decides to use the simple linear regression model fit to predict the sales. The manager reports he predicts the sales of 1675 thousand dollars when the company spends 175 thousand dollars on advertising. Select the best statement below. O The manager performed incorrect numerical calculations and reported an incorrect conclusion. O The manager performed incorrect numerical calculations; however, they reported a correct conclusion. O The manager performed correct numerical calculations and reported a correct conclusion. O The manager performed correct numerical calculations; however, they reported an incorrect conclusion.

A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable (Sales in thousands of dollars). Further assume that he has checked the assumptions and all four assumptions seem reasonable. The estimated model is the following: Predicted sales (thousands of dollars) = 100+9x (where x = amount spent on advertisement in thousands of dollars). Some additional helpful information: The range of the values of the explanatory variable are between $10,000 and $150,000 Assume this manager just received information that the current company plan is to spend $175,000 on advertising. This manager decides to use the simple linear regression model fit to predict the sales. The manager reports he predicts the sales of 1675 thousand dollars when the company spends 175 thousand dollars on advertising. Select the best statement below. O The manager performed incorrect numerical calculations and reported an incorrect conclusion. O The manager performed incorrect numerical calculations; however, they reported a correct conclusion. O The manager performed correct numerical calculations and reported a correct conclusion. O The manager performed correct numerical calculations; however, they reported an incorrect conclusion.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question 9 A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable (Sales in thousands of dollars). Further assume that he has checked the assumptions and all four assumptions seem reasonable. The estimated model is the following: Predicted sales (thousands of dollars) = 100+9x (where x = amount spent on advertisement in thousands of dollars). Some additional helpful information. The range of the values of the explanatory variable are between $10,000 and $150,000 Assume this manager just received information that the current company plan is to spend $175,000 on advertising. This manager decides to use the simple linear regression model fit to predict the sales. The manager reports he predicts the sales of 1675 thousand dollars when the company spends 175 thousand dollars on advertising. Select the best statement below. O The manager performed incorrect numerical calculations and reported an incorrect conclusion. O The manager performed incorrect numerical calculations; however, they reported a correct conclusion. O The manager performed correct numerical calculations and reported a correct conclusion. O The manager performed correct numerical calculations; however, they reported an incorrect conclusion.
Transcribed Image Text:Question 9 A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable (Sales in thousands of dollars). Further assume that he has checked the assumptions and all four assumptions seem reasonable. The estimated model is the following: Predicted sales (thousands of dollars) = 100+9x (where x = amount spent on advertisement in thousands of dollars). Some additional helpful information. The range of the values of the explanatory variable are between $10,000 and $150,000 Assume this manager just received information that the current company plan is to spend $175,000 on advertising. This manager decides to use the simple linear regression model fit to predict the sales. The manager reports he predicts the sales of 1675 thousand dollars when the company spends 175 thousand dollars on advertising. Select the best statement below. O The manager performed incorrect numerical calculations and reported an incorrect conclusion. O The manager performed incorrect numerical calculations; however, they reported a correct conclusion. O The manager performed correct numerical calculations and reported a correct conclusion. O The manager performed correct numerical calculations; however, they reported an incorrect conclusion.
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