The regression equation NetIncome = 2,277 + .0307 Revenue was fitted from a samp

Question

The regression equation NetIncome = 2,277 + .0307Revenue was fitted from a sample of 100 leading worldcompanies (variables are in millions of dollars).

Required:

(a)

If Revenue = 1, then NetIncome = .

(b)

Choose the correct statement.

(d)

If Revenue = 1000, then NetIncome =.

The regression equation NetIncome = 2,277 + .0307Revenue was fitted from a sample of 100 leading worldcompanies (variables are in millions of dollars).

Required:

(a)

If Revenue = 1, then NetIncome = .

(b)

Choose the correct statement.

Increasing the revenue lowers the net income.

Decreasing the revenue raises the net income.

Increasing the revenue raises the net income.

(d)

If Revenue = 1000, then NetIncome =.

Explanation / Answer

(a) NetIncome = 2,277 + 0.0307*1= 2277.031 (b) Increasing the revenue raises the net income. (d)NetIncome = 2,277 + 0.0307*1000=2307.7

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