Suppose advertising expenditure predicts first-week album sales, with both variables measured in thousands:
Ŷ = 134.14 + 0.096X
B₀ = 134.14. When advertising expenditure is zero, predicted first-week album sales are 134.14 thousand.
B₁ = 0.096. Each additional £1,000 of advertising expenditure predicts an increase of 0.096 thousand album sales,
or 96 albums.
Generating a prediction
If advertising expenditure is £100,000, X = 100 because expenditure is measured in thousands:
Ŷ = 134.14 + (0.096 × 100) = 143.74
The model predicts 143.74 thousand album sales