Question

Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increased by one unit of Advertising? The equation is: Y=45.9+123.3X.

Answer 1

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3