Answer to Question #141015 in Statistics and Probability for Margaret

Question

Attempting to analyze the relationship between advertising (X) and sales (Y) the owner of a furnitures store recorded the monthly advertising buget ( Rand thousands ) and the sales (Rand Millions ) for sample of 6 months
X- 23, 46, 60, 54, 28 ,33
Y- 96, 11.3 ,12.8 , 98 ,89 , 12.5
Which one of the following statements is incorrect
1. X = 40.67 Y=10.82
2. X represent the depend variable
3. b1= 8.624
4. b1= 0.054
5. The equation line us y= 8.624 + 0.054 X

Answer 1

Consider the equation of straight line

$$y= b0 + b1x$$

8.624 is the intercept (b0) while 0.054 is the slope (b1). X is the independent variable

Therefore options 2 and 3 are incorrect