The regression equation Netincome 2,251 0.0415 Revenue was estimated from a samp

Question

The regression equation Netincome 2,251 0.0415 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars). (a-1) lf Revenue = 1, then Netincome (a-2) Choose the correct statement. million. (Round your answer to 2 decimal places.) 0 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 = 20,256, then Net/ncome = million. (Round your answer to the nearest whole number.)

Explanation / Answer

equation is netincome=2251+0.0415*Revenue

a1) If revenue is 1, the netincome is 2251+0.0415=2251.0415

a2) since the coefficient of Revenue is +ve, answer is A

b) B

c) if revenue is 20256 then netincome is 2251+0.0415*20256 =3091.624 or 3092

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