The regression equation Netincome 2,1590.0513 Revenue was estimated from a sampl

Question

The regression equation Netincome 2,1590.0513 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.) Increasing the revenue raises the net income. Increasing the revenue lowers the net income. Decreasing the revenue raises the net income. (b) Choose the right option. The intercept is not meaningful because a firm cannot have net income when revenue is zero The intercept is meaningful because a firm can have net income when revenue is zero. (c) If Revenue = 20,494, then Netincome million. (Round your answer to the nearest whole number.)

Explanation / Answer

a-1

2.159+0.0513*1 = 2.21 Million

a-2

Increasing the revenue raises the net income

b)

option b : the intercept is meaningful

c)

Netincome = 3 million

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