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Reading 11- LOS F (Part 2): Q14

13.t is the y-intercept term, b0?

A)   34.7400.

B)   92.2840.

C)   512.3600.

D)   47.6712.

The correct answer was D)

The mean of the aggregate revenue (Y) is 3,645/10 = 364.50 and of the advertising expenditure (X) is 91.2/10 = 9.12. The y-intercept, b0 = MeanY – Slope * MeanX = 364.50 – 34.74 * 9.12 = 47.6712.

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