1. A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: y^ = 75 + 6x. This implies that if advertising is $600, then the predicted amount of sales (in dollars) is:

   		$ 4,875
   		$ 12,300
   		$123,000
   		$487,500

1. When the independent variables are correlated with one another in a multiple regression analysis, this condition is called

   		elasticity
   		homoscedasticity
   		heteroscedasticity
   		multicollinearity