Problem

Airline Net Income Exercises are based on the following table, which...

Airline Net Income Exercises are based on the following table, which compares the net incomes, in millions of dollars, of American Airlines , Continental Airlines , and Southwest Airlines :

a. Use the 2005 and 2009 data to obtain American’s net income A as a linear function of Continental’s net income C. (Use millions of dollars for all units.)

b. How far off is your model in estimating American’s net income based on Continental’s 2007 income?

c. What does the slope of the linear function from part (a) suggest about the net income of these two airlines?

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