SOLUTION: A local company wanted to predict the weekly sales based on the weekly newspaper advertising dollars. The model that result is: ŷ= 1.1 + 1.7x, where the dependent variable is the

Question 139502: A local company wanted to predict the weekly sales based on the weekly newspaper advertising dollars. The model that result is: ŷ= 1.1 + 1.7x, where the dependent variable is the amount of sales, in thousands of dollars, realized during the week and the independent variable is the amount spent on newspaper advertising, in hundreds of dollars, during the week. Interpret the meaning of the values �1.1� and �1.7� in the context of the problem.

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The model that result is: ŷ= 1.1 + 1.7x, where the dependent variable is the amount of sales, in thousands of dollars, realized during the week and the independent variable is the amount spent on newspaper advertising, in hundreds of dollars, during the week. Interpret the meaning of the values �1.1� and �1.7� in the context of the problem.
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If money spent on advertising is zero the amount of sales is 1.1 thousand dollars.
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For each 100 dollar increase of spending on advertising the sales increase by 1.7 thousand dollars.
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Cheers,
Stan H.
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