Assignment:
McDonald’s Corporation has reported the following values for total revenues and net income during the 1998 to 2005 period. All data are in billions of dollars:
|
|
1998
|
1999
|
2000
|
2001
|
|
Net Income
|
135
|
1.95
|
1.98
|
1.64
|
|
Total Revenues
|
1242
|
13.26
|
14.24
|
14.87
|
|
|
2002
|
2003
|
2004
|
2005
|
|
Net Income
|
0.89
|
1.47
|
2.28
|
2.60
|
|
Total Revenues
|
15.41
|
17.14 |
19.07
|
20.46 |
Determine the least-squares regression equation line for estimating net income and interpret its slope. For a year in which total revenues are $18.0 billion, estimate the net income for that year.
Provide complete and step by step solution for the question and show calculations and use formulas.