
Ultimate access to all questions.
An analyst regresses net profit margin (NPM) on research and development expenditure scaled by revenues (RDR) and gathers the following information:
| Estimate | Value |
|---|---|
| Intercept | 17.38% |
| Slope coefficient | -0.6000 |
The predicted value of NPM for a forecasted RDR of 7% is closest to:
A
4.20%
B
13.18%
C
21.58%