The scatter plot shows a regression line of advertising dollars spent and sales. If the company were to spend $7,000 on advertising, what would be the predicted future sales?
A)
$120,000

B)
$124,000

C)
$128,000

D)
$130,000

Following are solutions to the given graph:

Given:

Please find the given graph.

To find:

 Find the value=?

Solution:

The sales strategy is the increase in revenue that a firm expects to earn at some point in the future. It's a sales forecast prediction contributes to determining a study's validity as well as whether sales will trend upwards or lower. It creates a parallel from 7000 towards the curve end; this will intersect at about 124 on the y-axis.

Therefore, the answer is "Option B".

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The answer for if the company were to spend $7000 on advertising the predicted sales would be 128000 approx.

Step-by-step explanation:

X axis data is  advertising in in continuous in thousand dollars.Y axis data is sales which is discrete in thousand dollars.Since the number could in graph show extreme result in graph.The counts are taken in lower digits.X axis is assuming 5.7,5.85,5.95,6,6.05,6.15,6.3,6.4,6.45,6.5,6.55Y axis is assuming 108,109,113,111,110,115,114,119,118,116,118.After plotting this in the graph it is as per the diagrams.Algorithm for Linear regression is OLS ( ordinary least sqaure)formula is y = mx + c, y being the dependent variable...x being the dependent variable and c is constant.A constant is there is minimum start to sales in every product.Calculate slope m which is m =  N Σ(xy) − Σx ΣyN/ Σ(x2) − (Σx)2calculate intercept which is c = b =  Σy − m Σx /Nnow put it in y = mx + c , as per the above data y= 18.412xanswer is $ 128884 whic is closer to 128000.

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