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# Regression Analysis: Sales Total Vs Profit Total

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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."