Explore BrainMass
Share

Explore BrainMass

    Regression Analysis: Sales Total Vs Profit Total

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A company produces the financial results shown in the table below. The executives at the firm have good reason to believe that $10 million in sales will be generated in 2010. Using simple linear regression, you advise them that this will equate to...

    Year Sales Totals (in millions) Profit Totals (in millions)
    1998 $7.0 $0.15
    1999 $2.0 $0.10
    2000 $6.0 $0.13
    2001 $4.0 $0.15
    2002 $14.0 $0.25
    2003 $15.0 $0.27
    2004 $16.0 $0.24
    2005 $12.0 $0.20
    2006 $14.0 $0.27
    2007 $20.0 $0.44
    2008 $15.0 $0.34
    2009 $7.0 $0.17

    a. $209,600 in profits.
    b. $2,096,000 in profits.
    c. $186,900 in profits.
    d. $1,869,000 in profits.

    22. When the CEO asks you how sure you are of the accuracy of the result provided in Problem #21 above, you show her the r-squared value and respond...
    a. "54% sure."
    b. "67% sure."
    c. "84% sure."
    d. "93% sure."

    © BrainMass Inc. brainmass.com October 10, 2019, 7:25 am ad1c9bdddf
    https://brainmass.com/math/linear-algebra/regression-analysis-sales-total-vs-profit-total-580727

    Attachments

    Solution Summary

    The solution provides step by step method for the calculation of regression analysis. Formula for the calculation and Interpretations of the results are also included.

    $2.19