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62 Points Grading comment: Suppose we are measuring the average value of a company stock in dollars given the amount of money spent on advertising
62 Points Grading comment: Suppose we are measuring the average value of a company stock in dollars given the amount of money spent on advertising in the last year in dollars (i.e., y is "income" and x is "advertising"). In a simple linear regression of income on advertising, we compute a slope coefficient of 15. Consider two groups of companies that differ in their advertising spending by 100 dollars. According to this model, how much more income should the higher spending group have on average? Choice 1 of 5:100 dollars Choice 2 of 5:1000 dollars Choice 3 of 5:15 dollars Choice 4 of 5:150 dollars Choice 5 of 5:1500 dollars
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