# Regression Analysis: Sales Total Vs Profit Total

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."

https://brainmass.com/math/linear-algebra/regression-analysis-sales-total-vs-profit-total-580727

#### 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.