Question
In: Statistics and Probability
In a recent survey concerning company sales and net earnings, 15 companies responded with the following...
In a recent survey concerning company sales and net earnings, 15 companies responded with the following information.
| Company | Sales ($ thousands) |
Net Earnings ($ thousands) |
|---|---|---|
| Runners | 54.8 | 4.1 |
| NorthCo | 24.0 | 0.8 |
| JenStar | 42.6 | 2.2 |
| Text Tech | 57.6 | 4.2 |
| Capital Consultants | 56.7 | 3.6 |
| Financial Services | 34.9 | 1.8 |
| Cantu Excavating | 49.5 | 2.8 |
| Pace Design | 25.7 | 1.0 |
| CanTech Supply | 21.4 | 0.4 |
| Second Time Around Clothing | 25.3 | 0.7 |
| Echo Systems | 23.1 | -0.1 |
| Antique Accents | 51.3 | 3.5 |
| Spin Master Toys | 52.4 | 3.7 |
| XYZ Co. | 37.1 | 1.3 |
| Stiller Co. | 40.9 | 2.6 |
a) Using a statistical computing tool, find the
equation of the regression line.
For full marks your answer should be accurate to at least three
decimal places.
ŷ = ? + ?x
b) Use the regression line from part a to estimate
the net earnings for a company with sales of $54.8 thousand.
For full marks your answer should be accurate to at least one
decimal place.
Earnings: ?
| c) | Given the regression equation from part a, which of the
following statements is most appropriate regarding company sales
and earnings?
|
Solutions
Expert Solution
Here' the answer to the question. Please let me know in case you've doubts.
What I've done is performed a linear regression exercise in Excel for predicting Net earnings from Sales. You can find this in the image below.
The regression table below is used to get the
1. Regression equation. y^ = 1.993 + 0.105*X
2. From the regression equation, we sub the value of X to get Y^ or predicted Net Earnings.
It is $3.761 units or $3761.00 ( to 2 decimals as asked in the question)
orchestra answered 1 year agoRelated Solutions
In a recent survey concerning company sales and net earnings, 15 companies responded with the following...
In a recent survey concerning company sales and net earnings, 15
companies responded with the following information.
Company
Sales
($ thousands)
Net Earnings
($ thousands)
The Party Place
53.3
4.0
JenStar
39.5
3.3
Universal Maintenance Co.
47.9
4.0
JenCo
27.7
1.6
The Grayson Group
48.8
4.0
Apex Consulting
47.2
3.5
XYZ Co.
23.7
1.3
SouthCo
40.4
2.8
Southwest Consulting
59.8
3.9
Biotech Co
43.4
3.5
NorthCo
20.0
1.9
EastCo
53.9
3.5
Cantu Excavating
29.0
1.8
Classic Coverings
42.5
2.6
Second...
In a recent survey concerning ages and annual income, 4 people responded with the information in...
In a recent survey concerning ages and annual income, 4 people
responded with the information in the table below. Suppose that the
best-fit line obtained for this data is ŷ = 3.07x -43.47,
where age is the independent variable.
a) Find the estimated values of y and the
residuals for the data points.
For full marks your answer should be accurate to at least two
decimal places.
name
age
Annual income(thousands)
Estimated value
Residual
irlene
46
94.1
0
0
siran...
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a. Construct a 95%confidence interval estimate for the
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(Round to four decimal places as needed.)
b. Construct a 95 confidence interval estimate for the
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Gross property, plant, and equipment increased by a total of
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The Amherst Company has a net profits of $15 million, sales of $178 million, and 4.2...
The Amherst Company has a net profits of $15 million, sales of
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Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales...
Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the following
operating information for a recent year:
Sales
$5,632,000
__________
Cost of goods sold
$1,408,000
Selling, general and administration
528,000
_______________
$1,936,000
________________
Income from operations
$ 3,696,000*
*Before special items
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Consider the following financial information of 3 companies. Company A Company B Company C Net Income...
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OCF $5,000 $4,600 $4,200
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Company a
Company b
Company c
The GAMA Company has the following results. Net sales = $6,000,000 Net total assets = $4,000,000...
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