Interpret the slope of the least squares line

Assignment Help Business Economics
Reference no: EM132201182

To investigate the relationship between amount of sales y (in thousands of dollars) and the amount x (in hundreds of dollars) spent on advertising, a marketing researcher chooses eight cities of approximately equal populations and spends differing amounts on advertising in each city. The sales y and the amount x spent on advertising are recorded for each city. From the data the least squares prediction line is:   = 25.65 + 2.78x.

Interpret the slope of the least squares line.

Reference no: EM132201182

Questions Cloud

Why demand function are homogeneous of degree zero : Demand functions are homogeneous of degree zero in what arguments? What does it mean for a function to be homogeneous of degree k in its arguments?
What is the appropriate hypothesis test : What is the appropriate hypothesis test to use for this analysis: one-sample z-test for the population proportion, one-sample t-test for population proportion
What is going to happen to the federal debt : By 2046, tax revenues will cover only planned spending on Social Security and Medicare and part of the interest payments on the national debt.
Significant in lowering the unemployment rate : Since most of the values in the interval are positive, the unemployment program is statistically significant in lowering the unemployment rate.
Interpret the slope of the least squares line : From the data the least squares prediction line is: = 25.65 + 2.78x. Interpret the slope of the least squares line.
Describe the economic doctrine of mercantilism : Describe the economic doctrine of mercantilism. What are the policy implications of this doctrine? How did Adam Smith challenge this doctrine?
Consider the multiple regression prediction equation : Consider the multiple regression prediction equation = 7 + 3x1 - 4x2 + 5x1x2. Find the slope of the line relating and x1 when x2 = 3.
What is the nature of the business : What is the nature of the business in terms of the customer relationship? Is this a commodity product where price and convenience is critical.
What would be an example in healthcare : What is the difference between a hypothesis and null hypothesis. What would be an example in healthcare?

Reviews

Write a Review

Business Economics Questions & Answers

  Uses two types of workers–skilled and unskilled

A construction site uses two types of workers – skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function.  How many skilled and unskilled workers should be hired in order to produce the most pa..

  Characterize the types of tenants

Characterize the types of tenants who benefit from rent control and the types who are harmed.

  Mean of the sampling distribution

Is the vet correct at alpha = 5% . How would I find the mean of the sampling distribution? the value of the sample statistic and the p valve.

  Relationship between the marginal cost and average variable

Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.

  How to swim freestyle while keeping their hips raised

Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of individual training Rob provides in which the swimmers ..

  Health insurance-high-risk and low-risk consumers

Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year. If a..

  Middle of the distribution with respect to processing time

The time it takes to process phone orders in a small gift shop is normally distributed with a mean of 6 minutes and a standard deviation of 1.24 minutes. what cutoff values would separate the 95% of orders that are in the middle of the distribution w..

  Corresponding full employment level of nominal gdp

Suppose that the? long-run aggregate supply curve is positioned at a real GDP level of $14 trillion in base year? dollars and the? long-run equilibrium price.

  Borrowed money to purchase stocks and taxable corporate bond

Tom borrowed money to purchase stocks and taxable corporate bonds. During 2014 Tom paid $10,000 interest on this loan. Janice’s gross income in 2014 included $40,000 of wages, $5,000 of interest and $2,000 of capital gain taxed at the lower capital g..

  Lead to a reduction in the future supply of cotton

If we expect the current poor weather conditions to lead to a reduction in the future supply of cotton them:

  Working with the labor-leisure trade-off

Bill faces a wage of $10 per hour (W = $10/hr) and is trying to decide how to best allocate his daily 24 hours between work (which he does not like) and leisure ( which he thoroughly enjoys). Please construct Bill’s daily budget line with total incom..

  Calculate the firms maximized profit and revenue

Calculate the firm’s maximized profit, and the revenue and cost that produce that profit. (h) Calculate the elasticity of demand at the profit-maximizing point. (i) What is the firm’s markup at the profit-maximizing point? Confirm that this markup ha..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd