.09 polnts The regression equation Neuncome = 2.159 + 0.0513 Revenue was estimat

Question

.09 polnts The regression equation Neuncome = 2.159 + 0.0513 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars). (a-1) If Revenue = 1, then Netincome = (a-2) Choose the correct statement. million. (Round your answer to 2 decimal places.) O increasing the revenue raises the net income. Increasing the revenue lowers the net income O Decreasing the revenue raises the net income. (b) Choose the right option. O The intercept is meaningful because a firm can have net income when revenue is zero. O The intercept is not meaningful because a firm cannot have net income when revenue is zero. (c) If Revenue = 20,494, ten Notincome = million. (Round your answer to the nearest whole number.) References eBook & Resources Difficulty: 1 Easy Learning Objective: 12-02 Interpret a regression equation and use it to make predictions. show.pdf

Explanation / Answer

a - 1) Revenue = 1,

NetIncome = 2159 + 0.0513*1 = 2159.05

a - 2) Option A is correct.

a - 3) Option B is correct.

a - 4) Revenue = 20494,

NetIncome = 2159 + 0.0513*20494 = 3210 million

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