(b-1) Calculate the residual for the x, y pair ($61781, $4,622).(Negative value

Question

(b-1) Calculate the residual for the x, y pair ($61781, $4,622).(Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) (b-2) Did the regression equation underestimate or overestimate the net income? The regression equation overestimated the net income. The regression equation underestimated the net income. The regression equation Net income= 2,024 + 0.0335 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).

Explanation / Answer

b1. residual = 528.3365

residual = 4622 - (2024 + 0.0335*61781) = 528.3365

b2. Underestimated the net income.

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