IBM revenue. Revenue is the amount of money a company receives from its customers in exchange for the sale of goods or services and is the top line item on an income statement from which all costs, and expenses are subtracted to arrive at net income. Here’s the scatterplot for the International Business Machines (IBM) Corporation’s quarterly revenue from the first quarter of 2005 to the first quarter of 2020. (https://

www.macrotrends.net/stocks/charts/IBM/ibm/revenue)

Regression Statistics Multiple R 0.5583 R Square 0.3116 Adjusted R Square 0.3000 Standard Error 2516.2459 Observations 61 Variable Coefficient SE(Coeff) t-ratio P-value Intercept 25827.7803 652.3491 39.5920 0.0000 -94.5714 18.2982 -5.1684 0.0000

a) Interpret the slope and intercept of the regression model.

b) Interpret se in this context.

c) If IBM had a goal that it must have a minimum average revenue of $15,000 million by the end of 2035, will the company make it? Explain

d) What cautions would you state about your conclusion?

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Revenue ($ million) $31,000- $29,000- $27,000- $25,000 $23,000 $21,000- $19,000- $17,000- $15,000 IBM Quarterly Revenue 0 10 20 30 40 50 Quarters since 2005 -60 70