2. McDonalds Corporation has reported the following values for total revenues and net income during the 1998 to 2005 period. All data are in billions of dollars: Source: McDonalds Corporation, 2005 Annual     (a) Determine the least-squares regression equation line for estimating net income and interpret its slope. (b) For a year in which total revenues are $18.0 billion, estimate the net income for that year. (c) Also nd a 95% Condence and Prediction Interval for the above estimate. (d) Find the sample correlation coefficient for the model.

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2. McDonalds Corporation has reported the following values for total revenues and net income during the

1998 to 2005 period. All data are in billions of dollars: Source: McDonalds Corporation, 2005 Annual

 

 

(a) Determine the least-squares regression equation line for estimating net income and interpret its slope.

(b) For a year in which total revenues are $18.0 billion, estimate the net income for that year.

(c) Also nd a 95% Condence and Prediction Interval for the above estimate.

(d) Find the sample correlation coefficient for the model.

1998
1999
2000
2001
2002
2003
2004
2005
Net Income
1.55
1.95
1.98
1.64
0.89
1.47
2.28
2.60
Total Revenues
12.42
13.26
14.24
14.87
15.41
17.14
19.07
20.46
Transcribed Image Text:1998 1999 2000 2001 2002 2003 2004 2005 Net Income 1.55 1.95 1.98 1.64 0.89 1.47 2.28 2.60 Total Revenues 12.42 13.26 14.24 14.87 15.41 17.14 19.07 20.46
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