A researcher took a sample of 25 electronics companies and found the following relationship between x and y, where x is the amount of money (in millions of dollars) spent on advertising by a company...

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A researcher took a sample of 25 electronics companies and found the following relationship between x and y, where x is the amount of money (in millions of dollars) spent on advertising by a company in 2009 and y represents the total gross sales (in millions of dollars) of that company for 2009.


a. An electronics company spent $2 million on advertising in 2009. What are its expected gross sales for 2009?


b. Suppose four electronics companies spent $2 million each on advertising in 2009. Do you expect these four companies to have the same actual gross sales for 2009? Explain. c. Is the relationship between x and y exact or nonexact?




Answered Same DayDec 25, 2021

Answer To: A researcher took a sample of 25 electronics companies and found the following relationship between...

Robert answered on Dec 25 2021
124 Votes
a)
Predicted value for x = 2 is given by regression equation:
ŷ = b0 + b1x
ŷ = (3.6) + (11.75)
∗ (2) = 27.1
Expected gross sales = 27.1 (million)
b) No, the prediction in regression is only expected value, there can be random
errors in real life that will cause these four gross sales to...
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