Question

A retail analyst builds a multiple linear regression model to predict weekly store revenue using two predictors: advertising spend (in dollars) and number of staff on shift. The output shows a coefficient of 4.2 for advertising spend, with all other variables held constant. Which interpretation of this coefficient is correct?

Accepted Answer

For each additional dollar of advertising spend, predicted weekly revenue increases by $4.20, assuming staffing stays the same.

Answer

Advertising spend explains 4.2% of the total variation in weekly revenue.

Answer

A $4.20 increase in advertising spend produces a one-unit increase in weekly revenue.

Answer

Advertising spend and weekly revenue have a correlation coefficient of 4.2.