A regression analysis between sales (Y) and advertising (X) (both in dollars) resulted in the following equation: Y=200+12000X The above equation implies that

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A regression analysis between
sales (Y) and advertising (X) (both
in dollars) resulted
in the following equation:
Y=200+12000X
The above equation implies that
an
A) increase of $1 in advertising is
correlated with an increase of
$12,000 in sales.
B) increase of $1 in advertising is
correlated with an increase of
$200 in sales.
C) increase of $1 in advertising is
correlated with a decrease of
$12,000 in sales.
D) increase of $1 in advertising is
correlated with a decrease of
$200 in sales.
Transcribed Image Text:A regression analysis between sales (Y) and advertising (X) (both in dollars) resulted in the following equation: Y=200+12000X The above equation implies that an A) increase of $1 in advertising is correlated with an increase of $12,000 in sales. B) increase of $1 in advertising is correlated with an increase of $200 in sales. C) increase of $1 in advertising is correlated with a decrease of $12,000 in sales. D) increase of $1 in advertising is correlated with a decrease of $200 in sales.
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