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Interpret the Slope - Regression

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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. (Data are
from www.forbes.com and Forbes 172, no. 2 [July 21, 2003], pp. 108-110.) Global100

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Solution Summary

The solution interprets the slope in a regression model. The intercept is also analyzed.

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