Find average profit of companies with units of sales

Assignment Help Basic Statistics

Reference no: EM13150448

A random sample of 19 companies from the Forbes 500 list was selected, and the relationship between sales (in hundreds of thousands of dollars) and profits (in hundreds of thousands of dollars) was investigated by regression. The following simple linear regression model was used

Profitsi = α + β ×Salesi + εi

where the deviations εi were assumed to be independent and Normally distributed, with mean 0 and standard deviation σ. This model was fit to the data using the method of least squares. The following results were obtained from statistical software.

r2 = 0.662
s = 466.2

Suppose we wish to predict the profits (in hundreds of thousands of dollars) for companies that had sales (in hundreds of thousands of dollars) of 500. We use statistical software to do the prediction and obtain the following output.

A 95% confidence interval for the average profit of companies with 500 units of sales is?

Reference no: EM13150448

Questions Cloud

Find the new equilibrium gdp : find the new equilibrium GDP when I increases to 350 and all other values remain the same.

New york city''s banking community : New York City's banking community served many of the functions of a central bank during large parts of the "displaced 19th century". Discuss.

Determine the tax consequences of entity given : Amber has a 20% ownership interest in an entity for which she initially contributed $100,000. She is one of the original owners of the business. None of the owners are related. During the life of the business, the following have occurred:

Computing ending inventory and costs of goods sold : Compute the ending inventory and costs of goods sold assuming Camden Corporation follows IFRS and chose to use the weighted average method.

Find average profit of companies with units of sales : We use statistical software to do the prediction and obtain the following output. 95% confidence interval for the average profit of companies with 500 units of sales is?

Which of the following peptide sequences is likely alpha : Which of the following peptide sequences is likely alpha helical structure?

Discuss the process of natural selection as defined : Discuss the process of natural selection as defined by Darwin. How did Darwin's theories differ from his predecessors?

Pete''s report says that the demand curve will be : Pete's report says that the demand curve will be then OmiCon will build a shopping center that optimally sized for that demand curve. But in the second scenario, if Pete's report says the demand curve will be there is a 20% chance that demand curve w..

How many joules are released : How many joules are released when 6.94 moles of water cools from 100.0 degrees Celsius to 0.0 degrees Celsius?

User Account

All Pages