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) |
|---|---|---|
| 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 Time Around Clothing | 49.0 | 3.8 |
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 $21.6 thousand.
For full marks your answer should be accurate to at least one
decimal place.
Earnings: $? thousand
| c) | Given the regression equation from part a, which of the
following statements is most appropriate regarding company sales
and earnings?
|
Solutions
Expert Solution
The statistical software output for this problem is:
Hence,
a) y = -0.083 + 0.075 x
b) Predicted earnings = 1.5
c) Positive sales means positive net earnings for any business.
orchestra answered 2 years agoRelated Solutions
In a recent survey concerning company sales and net earnings, 15 companies responded with the following...
In a recent survey concerning company sales and net earnings, 15
companies responded with the following information.
Company
Sales
($ thousands)
Net Earnings
($ thousands)
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...
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For full marks your answer should be accurate to at least two
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Estimated value
Residual
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0
0
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__________
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