Question

The regression equation NetIncome = 2,498 + 0.0414 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).

       

(a-1)

If Revenue = 1, then NetIncome = ___________ million. (Round your answer to 2 decimal places.)

  

(a-2)	Choose the correct statement.
	Decreasing the revenue raises the net income. Increasing the revenue raises the net income. Increasing the revenue lowers 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 = 17,319, then NetIncome = _______________ million. (Round your answer to the nearest whole number.)

Answer 1