Your Questions About Residual Income Equation
Michael asks…Regression in Statistic?he regression equation: NetIncome = 2,297 + 0.0394 Revenue was estimated from a sample of 100 leading world companies (variables are in millions of dollars).
Calculate the residual for the x, y pair ($65,086, $4,560). (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)
Residual=
Did the regression equation underestimate or overestimate the net income?
A.The regression equation underestimated the net