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In order to analyze sales as a function of advertising expenses, the sales manager of Smith Company developed a simple regression model. The model included the following equation, which was based on 32 monthly observations of sales and advertising expenses with a related coefficient of determination of .90.
Sales = $10,000 + (2.5 × Advertising expenses)
If Smith Company’s advertising expenses in one month amounted to $1,000, the related point estimate of sales would be