Kold Co has collected eight months of data on the relationship between marketing expenditure per month (x) and sales revenue per month (y). The following results from correlation and regression calculations are available: ΣΧ ΣΥ b r 91.00 200,388.76 4.36 0.90 Which of the following statements are correct? (1) If no money is spent on marketing, sales will be $24,999 (to the nearest $) on average (2) For every additional $1 spent on marketing, sales revenue would increase by $0.90 (3) 81% of the variation in sales revenue is explained by changes in the amount of marketing expenditure O 1 and 2 only O1 and 3 only O 1, 2 and 3 O2 and 3 only

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Kold Co has collected eight months of data on the relationship between marketing expenditure per month (x) and sales revenue per month (y).
The following results from correlation and regression calculations are available:
[x
ΣΥ
r
91.00
200,388.76
4.36
0.90
Which of the following statements are correct?
(1) If no money is spent on marketing, sales will be $24,999 (to the nearest $) on average
(2) For every additional $1 spent on marketing, sales revenue would increase by $0.90
(3) 81% of the variation in sales revenue is explained by changes in the amount of marketing expenditure
1 and 2 only
O 1 and 3 only
O 1, 2 and 3
O2 and 3 only
Transcribed Image Text:Kold Co has collected eight months of data on the relationship between marketing expenditure per month (x) and sales revenue per month (y). The following results from correlation and regression calculations are available: [x ΣΥ r 91.00 200,388.76 4.36 0.90 Which of the following statements are correct? (1) If no money is spent on marketing, sales will be $24,999 (to the nearest $) on average (2) For every additional $1 spent on marketing, sales revenue would increase by $0.90 (3) 81% of the variation in sales revenue is explained by changes in the amount of marketing expenditure 1 and 2 only O 1 and 3 only O 1, 2 and 3 O2 and 3 only
Expert Solution
Step 1: Write the given information

Given the results from correlation and regression calculations for eight months of data as

sum x equals 91.00

sum y equals 200388.76

b equals 4.36

r equals 0.90

where, x: marketing expenditure per month and y: sales revenue per month

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