A regression analysis between sales Y in 1000 and advertisin

A regression analysis between sales (Y in $1000) and advertising (X in dollars) resulted in the following equation

Y = 30,000 + 4 X

The above equation implies that an

a.

increase of $4 in advertising is associated with an increase of $4,000 in sales

b.

increase of $1 in advertising is associated with an increase of $4 in sales

c.

increase of $1 in advertising is associated with an increase of $34,000 in sales

d.

increase of $1 in advertising is associated with an increase of $4,000 in sales

Solution

A regression analysis between sales (Y in $1000) and advertising (X in dollars) resulted in the following equation

Y = 30,000 + 4 X

The above equation implies that an

increase of $1 in advertising is associated with an increase of $4,000 in sales