Accounting · Management Accounting

In a linear regression analysis using data from a past six-month period, the monthly advertising expenditure ranged between $900 and $2,100. In which of the following circumstances would linear regression be suitable for forecasting sales for the next period, avoiding the risks of extrapolation? 1. When advertising is $500 per month 2. When advertising is $1,500 per month 3. When advertising is $1,800 per month 4. When advertising is $2,800 per month