Osteoporosis is a degenerative disease that primarily affects women over the age

Question

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 = 0 + 1Population + 2Income + , where Sales refers to the sales of StrongBones($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 ($1,000s). She collects data on 38 cities across the United States and obtains the following relevant regression results:

The two variables are positively related.

The two variables aren't related

The two variables are negatively related

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 = 0 + 1Population + 2Income + , where Sales refers to the sales of StrongBones($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 ($1,000s). She collects data on 38 cities across the United States and obtains the following relevant regression results:

Explanation / Answer

As the p-value for the variable population here is 0.0062 < 0.05 which is the level of significance, therefore the variable here is significant here. Also as the slope coefficient here for population here is 8.47 which is positive, this means that for an increase in the population the predicted value for sales increases and visa versa.

Therefore a) is the required answer here.

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