The Data on Profit and Market Capitalization for a Sample

question 59

Essay

The data on profit and market capitalization for a sample of 15 different firms in U.S are as below.
a. Develop a scatter chart for the above data. What does this chart indicate about the relationship between market capitalization and profit?
b. Use the data to develop an estimated regression equation that could be used to estimate a firm's profit based on its market capitalization. What is the estimated regression model?
c. What is the predicted profit for the market capitalization of 70721.3 ($ million)?
A) Develop a scatter chart for the above datA) What does this chart indicate about the relationship between market capitalization and profit?
B) Use the data to develop an estimated regression equation that could be used to estimate a firm's profit based on its market capitalization. What is the estimated regression model?
C) What is the predicted profit for the market capitalization of 70721.3 ($ million)?

• A) Develop a scatter chart for the above datA) What does this chart indicate about the relationship between market capitalization and profit?
• B) Use the data to develop an estimated regression equation that could be used to estimate a firm's profit based on its market capitalization. What is the estimated regression model?
• C) What is the predicted profit for the market capitalization of 70721.3 ($ million)?

---

Definitions:

Ethyne

A colorless gas with a sharp, distinct odor; the simplest alkyne, it is a hydrocarbon with the formula C2H2.

Acetylene

A hydrocarbon and the simplest alkyne, used as a fuel and a chemical building block, recognized by its formula C2H2.

Covalently Bonded Molecule

A molecule whose atoms are held together by covalent bonds, which involve the sharing of electron pairs between atoms.

Hydrogen

The first element on the periodic table, with the symbol H, known for being the lightest and most abundant chemical element in the universe.