Q5 Sales and profits A business analyst was interested in the relationship between a company's sales and its profits. She collected data (in millions of dollars) from a random sample of Fortune 500 companies and created the regression analysis and summary statistics shown. The assumptions for regression inference appeared to be satisfied. Profits Sales Count 79 79 Mean 209.839 4178.29 Variance 635,172 49,163,000 Std Dev 796.977 7011.63 Dependent variable is Profits R-squared = 66.2% s= 466.2 Variable Coefficient SE(Coeff) Intercept -176.644 61.16 Sales 0.092498 0.0075 a) Is there a statistically significant association between sales and profits? Test an appropriate hypothesis and state your conclusion in context. b) Do you think that a company's sales serve as a useful predictor of its profits? Use the values of both R? and s in your explanation.
Q5 Sales and profits A business analyst was interested in the relationship between a company's sales and its profits. She collected data (in millions of dollars) from a random sample of Fortune 500 companies and created the regression analysis and summary statistics shown. The assumptions for regression inference appeared to be satisfied. Profits Sales Count 79 79 Mean 209.839 4178.29 Variance 635,172 49,163,000 Std Dev 796.977 7011.63 Dependent variable is Profits R-squared = 66.2% s= 466.2 Variable Coefficient SE(Coeff) Intercept -176.644 61.16 Sales 0.092498 0.0075 a) Is there a statistically significant association between sales and profits? Test an appropriate hypothesis and state your conclusion in context. b) Do you think that a company's sales serve as a useful predictor of its profits? Use the values of both R? and s in your explanation.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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