A business analyst was interested in the relationship between a company/sales an

Question

A business analyst was interested in the relationship between a company/sales and its profits. She collected data (in millions of dollars) from a random sample of big business companies and created the accompanying regression analysis and summary statistics. The assumptions for regression inference appeared to be satisfied. Complete parts a) and b) below. Find a 99% confidence interval for the slope of the regression line. Interpret the interval in context. Select the correct choice below and fill in the answer boxes within your choice. Based on this regression, the analyst is confident that 99% of the Sales tell between^and million dollars. Based on this regression, average Sales increase between Q and million dollars for every million dollars in profits, with 99% confidence. Based on this regression, the analyst is confident that 99% of the Profits fall between and million dollars. Based on this regression, average Profits increase between and million dollars for every million dollars in sales, with 99% confidence. Last year, a drug manufacturer reported gross sales of $23 billion (that's $23,000 million). Create a 99% prediction interval for the company's profits, and interpret the interval in context Select the correct choice below and fill in the answer boxes within your choice. Based on the regression, the profit for the manufacturer should be between and million dollars with 99% confidence. Based on the regression. 99% of the profits will be between and million dollars. Regression Analysis and Summary Statistics

Explanation / Answer

Sol:

Reg equation is

profit=-107.626+0.076501(sales)

slope=0.076501

y intercept=-107.626

Option D

Between :0.05722 and 0.09578

Solution2

99% confidence interval: 0.05722 0.09578

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