PRC-2 · Chapter 10 · Question 12 of 60
If variable X represents advertising spend and variable Y represents sales revenue, what is the primary purpose of constructing a regression line of Y on X?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To predict expected sales revenue based on a given advertising budget.
Explanation
The entire purpose of the regression line equation y on x is forecasting. It allows a business to predict the value of the dependent variable (sales) based on the independent variable (advertising spend).
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