TABLE 13-01
a Large National Bank Charges Local Companies $E(Y)=\beta_{0}+\beta_{1} X$

question 40

Multiple Choice

TABLE 13-01
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 charge 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:
$E(Y) =\beta_{0}+\beta_{1} X$
The results of the simple linear regression are provided below.
$\hat{Y}=-2,700+20 X, \mathrm{~S}_{Y X}=65, \text { two-tailed } p \text { value }=0.034\left(\text { for testing } \beta_{1}\right)$

-Referring to Table 13-1, interpret the estimate of þ0, the Y-intercept of the line.

• A) About 95% of the observed service charges fall within $2,700 of the least squares line.
• B) For every $1 million increase in sales revenue, we expect a service charge to decrease $2,700.
• C) All companies will be charged at least $2,700 by the bank.
• D) There is no practical interpretation since a sales revenue of $0 is a nonsensical value.

Acknowledge the effects of unauthorized indorsement and the allocation of loss.

Understand the rights and defenses available against claims on negotiable instruments.

Comprehend the impact of the FTC Rule 433 on consumer transactions involving negotiable instruments.

Understand the basic concepts and misconceptions related to sleep and its characteristics.

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Unknown Area

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Data or knowledge that is suitable and relevant to the context or situation at hand, aiding in decision-making or problem-solving.

Self-disclosure

The act of revealing personal information, thoughts, or feelings to others, fostering intimacy or trust in relationships.