# Quiz 3 - The fitted regression is Fitted Sales = 842 37.5...

This preview shows pages 1–3. Sign up to view the full content.

The fitted regression is Fitted Sales = 842 − 37.5 Price . (a- 1) If Price = 1, then Fitted Sales = 804.5 . (a- 2) Choose the correct statement. An increase in price decreases sales. (b ) If Price = 20, then Fitted Sales = 92 . (c) Choose the right option. The intercept is not meaningful as a zero price is unrealistic. The regression equation Fitted NetIncome = 2,277 + .0307 Revenue was estimated from a sample of 100 leading world companies. (Variables are in millions of dollars). 2. award: 1 out of 1 point (b- 1) Calculate the residual for the x, y pair ( \$61,768, \$893 ). (A negative value should be indicated by a minus sign. Also, do not round! Carry your answer to a full four decimal places.) Residual -3,280.2776 (b- 1) Calculate the residual for the x, y pair ( \$61,768, \$893 ). (A negative value should be indicated by a minus sign. Also, do not round! Carry your answer to a full four decimal places.) Residual

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Explanation: = \$2,277 + 0.0307(\$61,768) = \$4,173.2776 , = 893 – 4,173.2776 = – 3,280.2776.
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/30/2011 for the course ECON 104 taught by Professor Dolenc during the Fall '08 term at UMass (Amherst).

### Page1 / 4

Quiz 3 - The fitted regression is Fitted Sales = 842 37.5...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online