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14.12: Problems

  • Page ID
    94729
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    1.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Create a scatter plot of the data set, comment on the correlation between these two variables, and comment on the correlation for this data (all dollar amounts are in thousands).
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.9
    2.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Calculate the correlation coefficient for this data (all dollar amounts are in thousands).
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.10
    3.
    A chief financial officer calculates the correlation coefficient for bond prices versus interest rate as -0.71. The data set contained nine (x, y) data points. Determine if the correlation is significant or not significant at the 0.05 level of significance.
    4.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Determine the best-fit linear regression equation for this data set (all dollar amounts are in thousands).
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.11
    5.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Assume the correlation is significant. Predict the cash flow for company revenues of $250,000 (all dollar amounts are in thousands).
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.12
    6.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Assume the correlation is significant. Predict the cash flow for company revenues of $750,000 (all dollar amounts are in thousands).
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.13
    7.
    A Fortune 500 company is tracking revenues versus cash flow for recent years, and the data is shown in the table below. Consider cash flow to be the dependent variable. Calculate the residual for the revenue value of $284,000 (all dollar amounts are in thousands):
    Revenues ($000s) Cash Flow ($000s)
    237 82
    241 86
    229 77
    284 94
    307 93
    Table 14.14

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