Assuming That a Regression Has Been Conducted for a Group

Multiple Choice

Assuming that a regression has been conducted for a group of small companies where x = the number of employees at the company, y = annual revenue of the company (recorded in thousands of dollars) , and the largest company included in the study had 82 employees. The resulting regression equation is = 59.2 + 83.4x. Which of the following is true?

A) For each additional employee, revenue on average will increase by $83.4
B) A company with 2100 employees could be predicted to have average revenue of about $175 million.
C) For each additional employee, revenue on average will increase by $59.2 thousand.
D) This model should not be used to make predictions for companies with more than 82 employees.