A Regression Analysis Between Sales (Y in $1000) and Advertising $\hat { y }$

A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: $\hat { y }$ = 30,000 + 4x

The above equation implies that an

A) increase of $4 in advertising is associated with an increase of $4000 in sales.
B) increase of $1 in advertising is associated with an increase of $4 in sales.
C) increase of $1 in advertising is associated with an increase of $34,000 in sales.
D) increase of $1 in advertising is associated with an increase of $4000 in sales.

Correct Answer:

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