Regression analysis was applied between $ sales (y) and $ advertising (x) across all the branches of a major international corporation. The following regression function was obtained. ! = 5000 + 7.25x If the advertising budgets of two branches of the corporation differ by $30,000, then what will be the predicted difference in their sales?
Answers
Given : Regression analysis was applied between $ sales (y) and $ advertising (x) across all the branches of a major international corporation. The following regression function was obtained. y = 5000 + 7.25x
the advertising budgets of two branches of the corporation differ by $30,000,
To Find : predicted difference in their sales?
Solution:
Assume one office has advertising budget = k and other k + 30000
Predicted sales when advertising budget K = 5000 + 7.25k
Predicted sales budget K = 30000 of advertising = 5000 + 7.25(k + 30000)
predicted difference in their sales = 5000 + 7.25(k + 30000) - { 5000 + 7.25k}
= 7.25 * 30000
= 217500
predicted difference in their sales = 217500
Learn More:
Which two points should the line of best fit go through to best ...
brainly.in/question/16164800
Payton collected data to show the relationship between the number ...
brainly.in/question/16174097
Answer:
217,500
Step-by-step explanation:
replace the y value with the 30000 and calculate to get 217,500.This is because the y value represents the sales made and the difference between the two branches was 30000.The 217500 will be the difference in their sales since we have also used the 30000 which was also their difference in advertising costs