Assuming that a regression has been conducted for a group of small companies where x = the number of employees at the company,y = annual revenue of the company (recorded in thousands of dollars),and the largest company included in the study had 82 employees.The resulting regression equation is = 59.2 + 83.4x.Which of the following is true?
A)For each additional employee,revenue on average will increase by $83.4
B)A company with 2100 employees could be predicted to have average revenue of about $175 million.
C)For each additional employee,revenue on average will increase by $59.2 thousand.
D)This model should not be used to make predictions for companies with more than 82 employees.

Question

Assuming that a regression has been conducted for a group of small companies where x = the number of employees at the company,y = annual revenue of the company (recorded in thousands of dollars),and the largest company included in the study had 82 employees.The resulting regression equation is  = 59.2 + 83.4x.Which of the following is true?
A)For each additional employee,revenue on average will increase by $83.4 
B)A company with 2100 employees could be predicted to have average revenue of about $175 million. 
C)For each additional employee,revenue on average will increase by $59.2 thousand. 
D)This model should not be used to make predictions for companies with more than 82 employees.

Quizplus · Accepted Answer

The Answer of Assuming that a regression has been conducted for a group of small companies where x = the number of employees at the company,y = annual revenue of the company (recorded in thousands of dollars),and the largest company included in the study had 82 employees.The resulting regression equation is  = 59.2 + 83.4x.Which of the following is true?
A)For each additional employee,revenue on average will increase by $83.4 
B)A company with 2100 employees could be predicted to have average revenue of about $175 million. 
C)For each additional employee,revenue on average will increase by $59.2 thousand. 
D)This model should not be used to make predictions for companies with more than 82 employees.

Assuming That a Regression Has Been Conducted for a Group