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Calculate the residual for the x-y pair

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Reference no: EM131178264

The regression equation NetIncome = 2,159 + 0.0312 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars)

a. Calculate the residual for the x, y pair ($45,533, $2,697). (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

b. Did the regression equation underestimate or overestimate the net income?

c. Calculate the residual for the x, y pair ($60,417, $3,497). (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

d. Did the regression equation underestimate or overestimate the net income?

Reference no: EM131178264

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