R1 Year Industry Revenue Number of Number of Sales per Dependent employees exist
ID: 3366647 • Letter: R
Question
R1 Year Industry Revenue Number of Number of Sales per Dependent employees existing employee Vaxiable) during thiscomparies during this time uing this ndependent Variable SUMMARY OUTPUT 22000 $3.495.400.000 60,19 Regression Stotstics Multiple F 0891181 R Square 0.794203 Adjusted 1 0.742754 standard I 1.18E09 568 $4 912,100.000 64. $5,582400,000. 2007 $6,241,400,000.00 o 2008 $9 184,700000 ANOVA $7,877,500,000 Regressio 64E-19 2.13E+19 15.43661 0.000202 Residual12 1665+19 1.38E18 Total Coefficier standard p-value intercept 4.25-09 1.66E+09 -2.56265 0.02488 -7.9+09 646+08 -7. 09 6.4+08 Number 01 77792.94|19715.63 3.94555 ?.001343 34834.1 120751.8 348341120751.8 Number o iede: 54886776 1.826438 0.092751 .1.?.07 2.2E+08-1.9E+07 2.2E+06 Sales per 4888 24 8327.003 4.189772 0.001255 16745.26 53031 23 16745.26 53031.23 t Stat Lower 95s upper 9SS Lower ss., Upper 950% 9(a) Explain the mening of the R" and stondd eors of your resuts (b) Interpret the coefficients of your regression resutsExplanation / Answer
a) R^2 value of 0.7942 means that 79.42% of the variability is explained by the regression model or how close your data is fit to the regression line. It is also known as the coefficient of determination.
Standard error measures how accurate are your predictions by the regression model. It tells us how close are the predictions.
b) The coefficients tell us the increase in the industry revenue when the independent variable is increased by 1 unit while the other variables being unchanged.
i) If the number of employees increases by 1, the industry revenue increases by 77792.94 units
ii) If the no. of existing companies increases by 1, the industry revenue increases by 100 Million units.
iii) If the sales per employee increases by 1, the industry revenue increases by 34888 units (The no. is not visible)
iv) The intercept equation tells us the industry revenue if the independent variables take the values as 0 OR there are no employees and companies during that time.
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