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A company produces the financial results shown in the table below. The executives at the firm have good reason to believe that $10 million in sales will be generated in 2010. Using simple linear regression, you advise them that this will equate to...
Year Sales Totals (in millions) Profit Totals (in millions)1998 $7.0 $0.151999 $2.0 $0.102000 $6.0 $0.132001 $4.0 $0.152002 $14.0 $0.252003 $15.0 $0.272004 $16.0 $0.242005 $12.0 $0.202006 $14.0 $0.272007 $20.0 $0.442008 $15.0 $0.342009 $7.0 $0.17
a. $209,600 in profits.
b. $2,096,000 in profits.
c. $186,900 in profits.
d. $1,869,000 in profits.
2. When the CEO asks you how sure you are of the accuracy of the result provided in Problem #21 above, you show her the r-squared value and respond...
a. "54% sure."
b. "67% sure."
c. "84% sure."
d. "93% sure."
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