Data were collected on monthly sales revenues in 10005 and m

Data were collected on monthly sales revenues (in $1,0005) and monthly advertising expenditures ($100s) for a sample of drug stores. The regression line relating revenues (Y) to advertising expenditure (X) is estimated to be y = 48.3 + 9.00x. The correct interpretation of the slope is that for each additional . A. $1,000 in sales revenue, advertising expenditures decrease by $48.30 B. $100 in sales revenue, advertising expenditures decrease by S48.30 C. $100 spent on advertising, predicted sales revenue increases by $9,000 D. $100 spent on advertising, predicted sales revenue decreases by S9,000 E $1 spent on advertising, predicted sales revenue increases by $9,000

Solution

The slope can be viewed as the change in y divided by the change in x. If x, the advertising expenditure increases by one unit ($100), then the sales (in thousands of dollars) increases by nine units.. So the correct choice is C.