Refer back to the regression equation in exercise 12 12 NetIncome
Refer back to the regression equation in exercise 12.12: NetIncome = 2,277 + .0307 Revenue. Recall that the variables are both in millions of dollars.
(a) Calculate the residual for the x, y pair ($41,078, $8,301). Did the regression equation underestimate or overestimate the net income?
(b) Calculate the residual for the x, y pair ($61,768, $893). Did the regression equation underestimate or overestimate the net income?
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