Question

question 20 of 25
suppose the linear regression line ( y = 2.1x + 130 ) predicts sales based on the money spent on advertising. if ( x ) represents the dollars spent in advertising, and ( y ) represents the company sales in dollars, about how much can the company expect in sales if it spends ( $ 50 ) in advertising?
a. ( $ 650 )
b. ( $ 235 )
c. ( $ 105 )
d. ( $ 323 )

Explanation:

Step1: Substitute \(x = 50\) into the regression equation

Given the equation \(y = 2.1x+130\), when \(x = 50\), we have \(y=2.1\times50 + 130\).

Step2: Calculate the value of \(y\)

First, calculate \(2.1\times50=\$105\). Then, \(y=105 + 130\).

Answer:

\(y=\$235\), so the answer is B.