Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = B0 + B1 Population + B2 Income + ε, where Sales is the sales of Strong Bones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 29 cities across the United States and obtains the following regression results: Intercept Population Income Coefficients 10.15 Standard Error t Stat p-Value 3.13 3.24 0.0071 8.45 1.11 7.61 0.0047 7.45 6.12 1.22 0.3468 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = + Population + Income b-1. Interpret the coefficient of population. ○ As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.45 million. O As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.45 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.45 million, holding income constant. O As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.45 million, holding income constant. b-2. Interpret the coefficient of income. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.45 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.45 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.45 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.45 million, holding population constant. c. Predict sales if a city has 1.6 million women over the age of 60 and their average income is $43,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =

Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = B0 + B1 Population + B2 Income + ε, where Sales is the sales of Strong Bones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 29 cities across the United States and obtains the following regression results: Intercept Population Income Coefficients 10.15 Standard Error t Stat p-Value 3.13 3.24 0.0071 8.45 1.11 7.61 0.0047 7.45 6.12 1.22 0.3468 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = + Population + Income b-1. Interpret the coefficient of population. ○ As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.45 million. O As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.45 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.45 million, holding income constant. O As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.45 million, holding income constant. b-2. Interpret the coefficient of income. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.45 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.45 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.45 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.45 million, holding population constant. c. Predict sales if a city has 1.6 million women over the age of 60 and their average income is $43,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section: Chapter Questions

Problem 4SGR

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