The regression equation netincome 2159 00312 revenue was, Ask an Expert

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The regression equation NetIncome = 2,159 + 0.0312 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).

(a-1) Calculate the residual for the x, y pair ($45,533, $2,697). (A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Residual

(a-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.

(b-1) Calculate the residual for the x, y pair ($60,417, $3,497).(A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Residual

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92766233

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