The regression equation NetIncome = 2,454 + 0.0313 Revenue was estimated from a

Question

The regression equation NetIncome = 2,454 + 0.0313 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).

Calculate the residual for the x, y pair ($49,963, $4,245). (A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Calculate the residual for the x, y pair ($63,971, $4,862).(A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

The regression equation NetIncome = 2,454 + 0.0313 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).

Explanation / Answer

NetIncome = 2,454 + 0.0313 * R

a1) when x = $49,963

y = 2,454 + 0.0313 * 49,963

y = 4017.84

a2) Oberved value = 4245

So,

b1)

y = 2,454 + 0.0313 * 63,971

y = 4456.29

b2) Oberved value = 4862

So,

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