a-regression-model-for-predicting-annual-revenue-from-number-of-employees-is-bas

Question

A regression model for predicting annual revenue from number of employees is based on data where x ranges from 20 to 100. Is it appropriate to use the model to predict revenue for x = 150?

Accepted Answer

No, because x = 150 is outside the range of the data (extrapolation).

Answer

Yes, if the correlation coefficient is close to zero.

Answer

Yes, because regression models can always be used for prediction.

Answer

No, because interpolation is only valid for x < 20.