Question

1.Based on the equation Y = 4.29 + 143.3X, Sales(Y) is in Units of $1000.00 and Advertising(X) is in Units of $100. What are Sales when $2,140.00 is spent on advertising?

2. Sales(Y) is in Units of $1000.00 and Advertising(X) is in Units of $100. If we want to calculate the value of sales when $40,614.00 is spent on advertising. What do we use for X in the following equation?  Y=42.9+143.3X.

Please, do the two questions and show processes

Answer 1

1. In equation Y = 4.29 + 143.3X, Y is in units of $ 1000.00 means total sales amount is in thousands (for example $ 1000 is in units of $1000 we have to right it as $1). So, in this question Sales (y) is calculated as follows:

Y = 4.29 + 143.3 (21.4) ( since from Advertisement Cost in $ 100 Units = $2140 / $100 = 21.4)

Y = 4.29 + 3066.62 = 3070.91

Sales = $3070.91 (in $1000 Units)

2. Sales(Y) is in Units of $1000.00 and Advertising(X) is in Units of $100. If we want to calculate the value of sales when $40,614.00 is spent on advertising, we have to use $406.14 in the place of X because we have convert the absolute amount in to $100 units amount (i.e., $40614 / $100 = $406.14).

Hence the Sales (Y)= 4.29 + 143.3 (406.14) = 58204.152 (in $1000 Units)