1. Suppose a company has estimated a regression model that specifies net cash flow as the dependent variable and sales as the independent variable and the output of the regression is presented below.

Summary Output

Coefficients Standard Error t Stat P-value

Intercept 38.89441962 89.06143029 0.437 0.66639

Sales 0.571163258 0.016973483 33.65 4.56E-21

Use this output for questions 16-18.

Question 16:Forecast net cash flow for sales of $5000

a.$3,578.

b.$3,784

c.$2,895

d.$1,854

5 points

QUESTION 17

Forecast net cash flow for sales of $6,000

a.$3,466

b.$1,357

c.$2,894

d.none of the above

5 points

QUESTION 18

Forecast net cash flow for sales of $3,000

a.$1,763

b.$1,752

c.$2,981

d.$5,437