Bellsouth earnings in billions are estimated using GNP (gross national product). The regression equation is = .078 + .06X where GNP is measured in billions of dollars. Interpret the Y intercept: 1. If GNP is equal to zero, we expect earnings to be .06. 2. If GNP is equal to zero, we expect earnings to be .07. 3. If GNP is equal to zero, we expect earnings to be .078. 4. If GNP is equal to zero, we expect earnings to be .08.
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