The accompanying data table contains financial data for 30 random technology companies. One column gives the expenses on research and development (R&D), and another gives the total assets of the 30 companies. Both of these columns are reported in millions of dollars. The data need to be expressed on a log scale; otherwise, two outlying companies dominate the analysis. Use the natural logs of both variables rather than the original variables in the data table. (Note that the variables are recorded in millions, so 1,000 = 1 billion.) Complete parts (a) through (c). Click the icon to view the data table of R&D expenses and total assets. OA. Yes. The new difference is between % and (Round to three decimal places as needed.) B. No. The answer to part (a) remains the same. %. (c) Find a 95% prediction interval for the R&D expenses of a firm with $1 billion in assets. Be sure to express your range on a dollar scale. Do you expect this interval to have 95% coverage? The R&D expenses for a firm with $1 billion in assets would be between $ million and $ million. (Round to one decimal place as needed.)

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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I want the answer for (c)
The accompanying data table contains financial data for 30 random technology companies. One column gives the expenses on research and
development (R&D), and another gives the total assets of the 30 companies. Both of these columns are reported in millions of dollars. The data need to be
expressed on a log scale; otherwise, two outlying companies dominate the analysis. Use the natural logs of both variables rather than the original variables in
the data table. (Note that the variables are recorded in millions, so 1,000 = 1 billion.) Complete parts (a) through (c).
Click the icon to view the data table of R&D expenses and total assets.
OA. Yes. The new difference is between % and
(Round to three decimal places as needed.)
B. No. The answer to part (a) remains the same.
%.
(c) Find a 95% prediction interval for the R&D expenses of a firm with $1 billion in assets. Be sure to express your range on a dollar scale. Do you expect
this interval to have 95% coverage?
The R&D expenses for a firm with $1 billion in assets would be between $ million and $ million.
(Round to one decimal place as needed.)
1
Transcribed Image Text:The accompanying data table contains financial data for 30 random technology companies. One column gives the expenses on research and development (R&D), and another gives the total assets of the 30 companies. Both of these columns are reported in millions of dollars. The data need to be expressed on a log scale; otherwise, two outlying companies dominate the analysis. Use the natural logs of both variables rather than the original variables in the data table. (Note that the variables are recorded in millions, so 1,000 = 1 billion.) Complete parts (a) through (c). Click the icon to view the data table of R&D expenses and total assets. OA. Yes. The new difference is between % and (Round to three decimal places as needed.) B. No. The answer to part (a) remains the same. %. (c) Find a 95% prediction interval for the R&D expenses of a firm with $1 billion in assets. Be sure to express your range on a dollar scale. Do you expect this interval to have 95% coverage? The R&D expenses for a firm with $1 billion in assets would be between $ million and $ million. (Round to one decimal place as needed.) 1
Insert Page Layout
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Assets
Home
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0.65
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14 @CNUM(6330.91}
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7
@CNUM(13052.04}
8 @CNUM(94826.10} @CNUM{7580.24}
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4.45
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30 @CNUM{7513.07)
31
32
33
34
35
36
37
38
39
7.09
135.38
335.12
40.44
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44°F
Cloudy
X
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B
R&D
0.19
9.15
314.79
571.01
341.42
0.32
0.08
0.89
362.45
12.46
77.91
1.54
2.36
13.79
7.14
5.42
0.72
22.17
7.37
94.51
257.62
1.13
9.48
47.02
277.24
6.09
✓ fx
Assets
D
E
Log Assets
-1.2078
Log R&D Log 10 Assets
-1.6488
-0.5245
4.5058
2.2136
1.9568
8.5661
5.7519
3.7202
9.4767 6.3474
4.1157
11.4598 8.9333
4.9769
9.4607
5.8331
4.1087
-0.4337
-1.1504
-0.1884
-1.2551 -2.5074
-0.5451
10.7433 8.4781
4.6658
-0.1167
0.741
1.7062
8.7532 5.8929
3.8015
4.7926 2.5229
2.0814
6.8584
4.3555
2.9786
1.6957
0.4302
0.7364
2.6805
0.8606
1.1641
4.7912 2.6238
2.0808
3.4075
1.9655
1.4799
4.1856
1.6899
1.8178
1.4935
-0.3305
0.6486
5.9748
3.0988
2.5948
4.3646 1.9972
1.8955
7.1633 4.5487
3.111
8.5843
5.5515
3.7281
1.9592
0.1219
0.8509
4.9081
2.2497
2.1316
5.8145
3.8506
2.5252
8.9244
5.6249
3.6997 1.8073
+
3.8758
1.6068
F
Log 10 R&D
-0.7161
0.9614
2.498
2.7566
3.8797
2.5333
-0.4996
-1.0889
3.682
-0.0507
2.5593
1.0957
1.8916
0.1868
0.3738
1.1395
0.8536
0.7339
-0.1435
1.3458
0.8674
1.9755
2.411
0.0529
0.977
1.6723
2.4429
0.7849
G
+
H
1
a
Transcribed Image Text:Insert Page Layout Formulas Data Review View PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you i NOTICE Most features are disabled because your Office product is inactive 1 4 File A1 A Assets Home 0.3 90.54 < > Ready 0.65 0.29 14 @CNUM(6330.91} 15 5 6 @CNUM(5250.61} 7 @CNUM(13052.04} 8 @CNUM(94826.10} @CNUM{7580.24} 9 @CNUM(12844.87} 10 11 12 @CNUM{46318.65} @CNUM{4808.31) 13 5.51 16 17 18 19 20 21 22 23 24 25 @CNUM{1291.16} 26 @CNUM(5347.05} 27 28 120.61 951.84 5.45 14.59 120.45 30.19 65.73 4.45 393.39 78.62 29 30 @CNUM{7513.07) 31 32 33 34 35 36 37 38 39 7.09 135.38 335.12 40.44 : 44°F Cloudy X .. B R&D 0.19 9.15 314.79 571.01 341.42 0.32 0.08 0.89 362.45 12.46 77.91 1.54 2.36 13.79 7.14 5.42 0.72 22.17 7.37 94.51 257.62 1.13 9.48 47.02 277.24 6.09 ✓ fx Assets D E Log Assets -1.2078 Log R&D Log 10 Assets -1.6488 -0.5245 4.5058 2.2136 1.9568 8.5661 5.7519 3.7202 9.4767 6.3474 4.1157 11.4598 8.9333 4.9769 9.4607 5.8331 4.1087 -0.4337 -1.1504 -0.1884 -1.2551 -2.5074 -0.5451 10.7433 8.4781 4.6658 -0.1167 0.741 1.7062 8.7532 5.8929 3.8015 4.7926 2.5229 2.0814 6.8584 4.3555 2.9786 1.6957 0.4302 0.7364 2.6805 0.8606 1.1641 4.7912 2.6238 2.0808 3.4075 1.9655 1.4799 4.1856 1.6899 1.8178 1.4935 -0.3305 0.6486 5.9748 3.0988 2.5948 4.3646 1.9972 1.8955 7.1633 4.5487 3.111 8.5843 5.5515 3.7281 1.9592 0.1219 0.8509 4.9081 2.2497 2.1316 5.8145 3.8506 2.5252 8.9244 5.6249 3.6997 1.8073 + 3.8758 1.6068 F Log 10 R&D -0.7161 0.9614 2.498 2.7566 3.8797 2.5333 -0.4996 -1.0889 3.682 -0.0507 2.5593 1.0957 1.8916 0.1868 0.3738 1.1395 0.8536 0.7339 -0.1435 1.3458 0.8674 1.9755 2.411 0.0529 0.977 1.6723 2.4429 0.7849 G + H 1 a
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