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xenn [34]
3 years ago
11

A company is investigating the relationship between the number of paper clips it purchases (x) and its net income (y). A sharp q

uant methods analyst obtained a least squares regression line from available data, y= $106,729 - 0.8x. If x = 3000 paper clips are planned to be purchased next month. Predict next month's net income.
Business
1 answer:
Ede4ka [16]3 years ago
3 0

Answer:

$104,329

Explanation:

Given that,

Least squares regression line from available data:

y = $106,729 - 0.8x

where,

y = Net income

x = Number of paper clips it purchases

If x = 3,000 paper clips are planned to be purchased next month then the next month's net income is calculated as follows:

= $106,729 - 0.8x

= $106,729 - (0.8 × 3,000)

= $106,729 - $2,400

= $104,329

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