Question
A company uses regression analysis in which monthly advertising expenses are used to predict monthly product sales, both in millions of dollars. The results show
A company uses regression analysis in which monthly advertising expenses are used to predict monthly product sales, both in millions of dollars. The results show a regression coefficient for the independent variable equal to 0.8. This coefficient value indicates that
A) on average, every additional dollar of advertising results in $0.8 of additional sales.
B) advertising is not a good predictor of sales because the coefficient is so small.
C) when monthly advertising is at its average level, product sales will be $800,000.
D) the average monthly advertising expenditure in the sample is $800,000.
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