AP Statistics - Unit 2 Progress Check MCQ Part B latest solution A+ QUALITY

AP Statistics - Unit 2 Progress Check MCQ Part B latest solution A+ QUALITY A small business owner has created a linear regression model to predict the number of new customers who will visit a shop based on the number of times the owner has an advertisement played on the radio. What is the explanatory variable and what is the response variable? - Explanatory: number of times the advertisement is played; response: number of new customers Bankers at a large financial institution created the linear regression model dˆ=0.37−0.0004s to predict the proportion of customers who would default on their loans, d, based on the customer's credit score, s. For a customer with a credit score of 700, which of the following is true? - The default proportion is predicted to be 0.09. A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts several experiments, each time spending less than $1,000 in advertising. When she analyzed the relationship between x = advertising spending and y= product sales, the relationship was linear with r=0.90. Her boss is thrilled and asks her to estimate product sales for $100,000 in advertising spending. Is it appropriate for her to calculate a predicted amount of product sales with advertising spending of $100,000 ? - No, because $100,000 is much greater than the values used in the experiment.