assuming that a regression has been conducted for a group of small companies whe
ID: 3228821 • Letter: A
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assuming that a regression has been conducted for a group of small companies where x= the number of empl QUESTION 24 334 points Save Answer Assuming that a regression has been conducted for a group of small companies where number of employees at the company y annual revenue of the company (recorded in thousands of dollars, and the largest company included in the study employees. The resulting rogression equation is 592+83.4x. Which of the following is true? O A company with 2100 employees could be predicted to have average revenue of about $175 million. O For each additional employee, revenue on average will increase by $59.2 thousand. O For each additional employee, revenue on average will increase by $83.4 O This model should not be used to make predictions for companies with more than 82 employees. QUESTION 25 334 points Save Answer A multiple regression was conducted to predict the price of yachts in thousands of dollars. A dummy variable was included to indicate whether or not the yacht has a flying bridge, where 0 means "no" and 1 means yes. Regression Statistics 0.890579188 Multiple R 0.793131289 R Square Adjusted R Square 0.7379663 Standard Error 30.28395534 Observations MacBook ProExplanation / Answer
Answer - 24: Since the largest company which has been taken in the sample was having 82 employees, this regression model should not be used for the companies having more than 82 employees.
Option D is correct.
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