Suppose you work for a software company and you would like to estimate the market value of your company. You hypothesize that the market value of a software company (response variable) is a linear function of its earnings (explanatory variable). To test this, you collect data on the earnings and market value of 4 companies in your industry. This results in the following data: Company earnings ($mm) market cap ($mm) Unicorn 12 70 Bolt 2 24 PsiCo 100 700 Big 50 450 You fit a linear regression to these data. What is the residual for PsiCo?
Suppose you work for a software company and you would like to estimate the market value of your company. You hypothesize that the market value of a software company (response variable) is a linear function of its earnings (explanatory variable). To test this, you collect data on the earnings and market value of 4 companies in your industry. This results in the following data: Company earnings ($mm) market cap ($mm) Unicorn 12 70 Bolt 2 24 PsiCo 100 700 Big 50 450 You fit a linear regression to these data. What is the residual for PsiCo?
Chapter4: Linear Functions
Section: Chapter Questions
Problem 8PT: Does Table 1 represent a linear function? If so, finda linear equation that models the data.
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Suppose you work for a software company and you would like to estimate the market value of your company. You hypothesize that the market value of a software company (response variable) is a linear
Company | earnings ($mm) | market cap ($mm) |
Unicorn | 12 | 70 |
Bolt | 2 | 24 |
PsiCo | 100 | 700 |
Big | 50 | 450 |
You fit a linear regression to these data. What is the residual for PsiCo?
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