You are given a regression equation for the relationship between a local music stores sales (y) and expenditure on advertising (x) both measured in thousands of dollars ($000s). It is (y-hat) = 25 + 0.15 x Interpret this equation. Select one: a. The slope is 0.85 and the intercept is 25. This means that with 0 advertising the sales would be $850 and each $1,000 in advertising yields $2,500 in sales. b. The slope is 0.85 and the intercept is 25. This means that with 0 advertising the sales would be $25,000 and each $1,000 in advertising yields $850 in sales. c. The slope is 25 and the intercept is .85. This means that with 0 advertising the sales would be $25,000 and each $1,000 in advertising yields $850 in sales. d. The slope is 25 and the intercept is .85. This means that with 0 advertising the sales would be $25,000 and each $1,000 in advertising yields $850 in sales
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
You are given a regression equation for the relationship between a local music stores sales (y) and expenditure on advertising (x) both measured in thousands of dollars ($000s). It is (y-hat) = 25 + 0.15 x
Interpret this equation.
The slope is 0.85 and the intercept is 25. This means that with 0 advertising the sales would be $850 and each $1,000 in advertising yields $2,500 in sales.
The slope is 25 and the intercept is .85. This means that with 0 advertising the sales would be $25,000 and each $1,000 in advertising yields $850 in sales.
The slope is 25 and the intercept is .85. This means that with 0 advertising the sales would be $25,000 and each $1,000 in advertising yields $850 in sales.
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