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?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
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 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?

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