Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable

A manager has estimated a simple linear regression model with an explanatory variable (amount spent on advertisement in thousands of dollars) and a response variable (Sales in thousands of dollars). Further assume that he has checked the assumptions and all four assumptions seem reasonable. The estimated model is the following:

Predicted sales (thousands of dollars) = 100+9x (where x = amount spent on advertisement in thousands of dollars).

Some additional helpful information: The range of the values of the explanatory variable are between $10,000 and $150,000, the median of the explanatory is 82 thousand dollars and the sample mean of the explanatory variable is 83 thousand dollars. The median of the response variable is 728thousand dollars. TheRSquaredvalues is 0.89.

The narrowest prediction interval for sales at an individual store occurs when the store spends _________ thousand dollars on advertisement.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Unlocking The Power Of Data

Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock

1st Edition

0470601876, 978-0470601877

Students also viewed these Mathematics questions

Question

What are ISO 9000 and Six Sigma?

Answered: 1 week ago