12.10 The regression equation NetIncome = 2,277 + .0307 Revenue was fitted from a sample of 100 leading world companies (variables are in millions of dollars). (a) Interpret the slope. (b) Is the intercept meaningful? Explain. (c) Make a prediction of NetIncome when Revenue = 1,000.
12.11 The regression equation HomePrice = 51.3 + 2.61 Income was fitted from a sample of 34 cities in the eastern United States. Both variables are in thousands of dollars. HomePrice is the median selling price of homes in the city, and Income is median family income for the city. (a) Interpret the slope. (b) Is the intercept meaningful? Explain. (c) Make a prediction of HomePrice when Income = 50 and also when Income = 100.
(a) The net income increases by 0.0307 million dollars for every one million dollar increase in the revenue
(b) The intercept id 2277 million dollars. It is not meaningful in this case ...
Complete, neat and step-by-step solutions are provided for the two problems, including determination of slope, the intercepts meaning, and predictions based on the information given.