The regression equation Netincome 2,693 + 0.0501 Revenue was estimated from a sa
ID: 3316123 • Letter: T
Question
The regression equation Netincome 2,693 + 0.0501 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars). (a-1 ) If Revenue-1, then Net/ncome (a-2) Choose the correct statement. million. (Round your answer to 2 decimal places.) Decreasing the revenue raises the net income O Increasing the revenue lowers the net income. O Increasing the revenue raises the net income. (b) Choose the right option. The intercept is meaningful because a firm can have net income when revenue is zero. O The intercept is not meaningful because a firm cannot have net income when revenue is zero. (c) Ir Revenue 20,938, then Netincome million (Round your answer to the nearest million. (Round your answer to the nearest whole number.)Explanation / Answer
a1)
Netincome = 2693+0.0501 = 2693.05
a2) Increasing the revenue raises the net income
b)The intercept is meaningful because a firm can have net income when revenue is zero.
c) Netincome is 3742 million