SCENARIO 13-1 a Large National Bank Charges Local Companies for Using

question 192

Multiple Choice

SCENARIO 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: The results of the simple linear regression are provided below. two-tail p value =0.034 (for testing
-Referring to Scenario 13-1, interpret the estimate of 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:

Identifying Features

Characteristics or traits that allow for the recognition or identification of a specific person or thing.

Subpersonalities

Different aspects or facets of an individual's personality, each with its own behaviors, preferences, and views.

Dissociative Identity Disorder

A complex psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual, often as a response to trauma.

Average Number

A statistical measure representing the sum of values divided by the number of values, commonly used to describe the central tendency or typical value of a data set.