(Choose 1 answer)
(See picture)
A. For every $1million increase in sales revenue, we expect a service charge to decrease $2,700.
B. There is no practical interpretation since a sales revenue of $0 is a nonsensical value.
C. About 95% of the observed service charges fall within $2,700 of the least squares line.
The results of the simple linear regression are provided below.
Y = -2,700 + 20X, Syx = 65, two-tail p value = 0.034 (for testing β₁).
hish
A large national bank charges local companies for using their services. A bank official reported the results of a regression analysis designed to predict the bank's charges (Y) -- measured in dollars per month -- for services rendered to local companies. One independent variable used to predict service charges to a company is the company's sales revenue (X) -- measured in millions of dollars. Data for 21 companies who use the bank's services were used to fit the model: Y = βο + β₁Xi + Ei
Exit 9
