A Large National Bank Charges Local Companies for Using Their $$Y _ { 1 } = b _ { 0 } + b _ { 1 } x _ { 1 } + \varepsilon _ { j }$$

question 42

Multiple Choice

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:
$$Y _ { 1 } = b _ { 0 } + b _ { 1 } x _ { 1 } + \varepsilon _ { j }$$
The results of the simple linear regression are provided below:
$$\hat { Y } = - 2,700 + 20 X , S _ { Y X } = 65 \text {, two-tailed } p \text {-value } = 0.034 \text { (for testing } \theta _ { 1 } \text { ) }$$
-Referring to Instruction 12.1,interpret the estimate of ?,the standard deviation of the random error term (standard error of the estimate) in the model.

• A) About 95% of the observed service charges fall within $130 of the least squares line.
• B) About 95% of the observed service charges fall within $65 of the least squares line.
• C) About 95% of the observed service charges equal their corresponding predicted values.
• D) For every $1 million increase in sales revenue, we expect a service charge to increase $65.

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Definitions:

Expressed Struggle

Involves the outward manifestation or communication of hardship, disagreement, or conflict between individuals or groups.

Independence

The state or condition of being free from dependence, control, or influence of another or others.

Destructive Conflict

Conflict that escalates to a point where it causes harm, disrupts relationships, and prevents resolution, often leading to long-term negative consequences.

Domination and Submission

A dynamic of power where one party controls or has authority over the other, often discussed in various contexts, including interpersonal relationships.