The formula for using monthly advertising expenditure to predict monthly sales revenue for a certain company is Y' = 1.81X + 5843 (all values in dollars). This indicates that the company is wasting money on advertising 5843 is spent on advertising each month each dollar spent on advertising increases revenue by $1.81 spending 5843 dollar on advertising increases sales by a factor of 2. If the value of the Standard Error of the Estimate is 6.9, it means that for each increase of 1 unit in X, the Y value is expected to increase by 6.9 units the Y variable is expected to have a value of 6.9 when the X value is 6.9 percent of the variability in Y is explained by the relationship with X about 68 percent of the predicted Y values will fall within 6.9 units on either side of the regression line

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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The formula for using monthly advertising expenditure to predict monthly sales
revenue for a certain company is Y' = 1.81X + 5843 (all values in dollars). This
indicates that
the company is wasting money on advertising
5843 is spent on advertising each month
each dollar spent on advertising increases revenue by $1.81
spending 5843 dollar on advertising increases sales by a factor of 2.
If the value of the Standard Error of the Estimate is 6.9, it means that
for each increase of 1 unit in X, the Y value is expected to increase by 6.9 units
the Y variable is expected to have a value of 6.9 when the X value is
6.9 percent of the variability in Y is explained by the relationship with X
about 68 percent of the predicted Y values will fall within 6.9 units on either side
of the regression line
Transcribed Image Text:The formula for using monthly advertising expenditure to predict monthly sales revenue for a certain company is Y' = 1.81X + 5843 (all values in dollars). This indicates that the company is wasting money on advertising 5843 is spent on advertising each month each dollar spent on advertising increases revenue by $1.81 spending 5843 dollar on advertising increases sales by a factor of 2. If the value of the Standard Error of the Estimate is 6.9, it means that for each increase of 1 unit in X, the Y value is expected to increase by 6.9 units the Y variable is expected to have a value of 6.9 when the X value is 6.9 percent of the variability in Y is explained by the relationship with X about 68 percent of the predicted Y values will fall within 6.9 units on either side of the regression line
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