An analyst at Umbrella Corporation studied the relationship between the sales (i
ID: 3394290 • Letter: A
Question
An analyst at Umbrella Corporation studied the relationship between the sales (in millions of dollars) of a product (Y) and population (in millions of people) in the company's 50 marketing districts. After fitting the simple linear regression model
What is the "real-world" interpretation of this interval?
The company can be 95% confident, based on the method used to calculate the interval, that the true increase in mean sales for each additional 1 million persons in the marketing district is between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that the true mean sales in the marketing district are between $453,000 and $1,060,000.
The company can claim, based on the method used to calculate the interval, that 95% of sales in a marketing district with 1 million people will be between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that the true mean sales when the population is 0 is between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that total sales for 1 million persons in the marketing district will be between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that the true increase in mean sales for each additional 1 million persons in the marketing district is between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that the true mean sales in the marketing district are between $453,000 and $1,060,000.
The company can claim, based on the method used to calculate the interval, that 95% of sales in a marketing district with 1 million people will be between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that the true mean sales when the population is 0 is between $453,000 and $1,060,000.
The company can be 95% confident, based on the method used to calculate the interval, that total sales for 1 million persons in the marketing district will be between $453,000 and $1,060,000.
Explanation / Answer
Note that the slope here is the increase in sales (in millions of dollars) per every 1 million increase in population. Hence, as this is a confidence interval for the slope, then
OPTION A: The company can be 95% confident, based on the method used to calculate the interval, that the true increase in mean sales for each additional 1 million persons in the marketing district is between $453,000 and $1,060,000. [ANSWER, A]
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