Model Interpretation

A simple linear regression model was run to understand the relationship between:

- price in thousands of dollars (P)

- sales in dollars (S)

The model output the following equation:

S = 50,000 8P

Which of the following is true about the relationship between sales and price?

a) An increase of $8 in price is associated with an increase of $8,000 in sales

b) An increase of $1 in price is associated with a decrease of $8000 in sales

c) An increase of $1 in price is associated with a decrease of $80 in sales

d) An increase of $1 in price is associated with a decrease of $42,000 in sales