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The linear regression equation y = 4.2x + 120,000 models the relationship between the amount of money x a...

The linear regression equation y = 4.2x + 120,000 models the relationship between the amount of money x a company spends on advertising, in dollars, and their revenue y, also in dollars.
What is the rate of change in the regression equation y = 4.2x + 120,000? Explain the meaning of this number.

Answer

The rate of change in the regression equation y = 4.2x + 120,000 is 4.2.

This number represents the increase in revenue (y) for each additional dollar spent on advertising (x). In other words, for every dollar the company spends on advertising, their revenue increases by $4.20.

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