Regression equation underestimate or overestimate net income

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Reference no: EM131926226

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-1) Calculate the residual for the x, y pair ($45,533, $2,697). (A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Residual (a-2) Did the regression equation underestimate or overestimate the net income? The regression equation overestimated the net income. The regression equation underestimated the net income. (b-1) Calculate the residual for the x, y pair ($60,417, $3,497).(A negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Residual (b-2) Did the regression equation underestimate or overestimate the net income? The regression equation overestimated the net income. The regression equation underestimated the net income.

Reference no: EM131926226

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