Regression - Statistics?

Can anyone explain why they got 150000? My guess would've been 5100.

Thanks!

Attachment image

2 Answers

Relevance
  • 4 weeks ago
    Best Answer

    The problem is due to the unit of the equation.

    It says

    Sales = 100 + 10*(Ad) where Sales are in 1000 dollars unit

    where (Ad) is in $100 dollars units

    so Ad = $500 in $100 dollar units is 500/100 = 5

    so put 5 into the equation

    Sales = 100 + 10*5 = 150 (in $1000 dollars )

    so

    Sales = 150*1000 = $150,000

  • 4 weeks ago

    You need to input the advertising in $100s.

    So the input for $500 is just 5.

    You get an output of 150. But that's in $1000s, so that is $150,000

Still have questions? Get your answers by asking now.