In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to p
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Answer:
The correct option is (b).
Explanation:
The regression equation to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies based upon the company's sales revenue (X) measured in millions of dollars is:
The <em>y</em>-intercept of the line is, -3100.
The slope of the line is, 27.
The <em>y-</em>intercept of a regression line is defined as the average value of the dependent variable when the independent variable value is 0.
The dependent variable, in this case, is the bank's charges and the independent variable is the company's sales revenue.
As the company's sales revenue cannot be $0, the <em>y</em>-intercept cannot be interpreted.
Thus, the correct option is (b).
Answer:
a. 3.58
Explanation:
the price earning ratio is obtain with the following formula:
We are given with the market price, now we need to solve for the EPS
with sales and profit margin we solve for net income. then we divide by the shares outstanding to get the EPS
823,000 sales x 4.2 profit margin = 34.566 net income
now we solve for EPS Earning per share:
Now we can sovle for price-earnings ratio
16.50/4.61 = 3,5791 = 3.58