TABLE 13-1 A Large National Bank Charges Local Companies for Using Their

question 105

Multiple Choice

TABLE 13-1
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_i = β₀ + β₁X_i + ε_i
The results of the simple linear regression are provided below.
-Referring to Table 13-1,interpret the estimate of β₀,the Y-intercept of the line.

• A)All companies will be charged at least $2,700 by the bank.
• 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.
• D)For every $1 million increase in sales revenue,we expect a service charge to decrease $2,700.

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Definitions:

44 Chromosomes

An atypical number of chromosomes in humans, which usually have 46. This condition can lead to certain genetic disorders or syndromes.

Chromosomal Pairs

The sets of two chromosomes in each cell of an organism, with one inherited from each parent, crucial for genetic traits and reproductive processes.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information.

Nucleus

In biology, the membrane-bound organelle found in eukaryotic cells that contains most of the cell's genetic material.