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

question 198

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:
Yᵢ = β₀ + β₁Xi + Eᵢ
The results of the simple linear regression are provided below.

-Referring to Table 13-1, a 95% confidence interval for β₁ is (15, 30) . Interpret the interval.

• A) You are 95% confident that the mean service charge will fall between $15 and $30 per month.
• B) You are 95% confident that the sales revenue (
• X) will increase between $15 and $30 million for every $1 increase in service charge (
• Y).
• C) You are 95% confident that mean service charge (
• Y) will increase between $15 and $30 for every $1 million increase in sales revenue (
• X).
• D) At the α = 0.05 level, there is no evidence of a linear relationship between service charge (
• Y) and sales revenue (

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Definitions:

Social Media Listening

The process of monitoring and analyzing online conversations and mentions about a brand, topic, or industry on social media platforms.

Observational Research

A research method involving the systematic observation and documentation of behaviors or phenomena as they occur in their natural settings.

Sentiment

The emotional tone or attitude expressed in a piece of text, speech, or other forms of communication.

Secondary Research

The process of collecting and analyzing existing data that was gathered by others, as opposed to conducting new or primary research.