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

question 8

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 p-value for testing whether ?₁ exceeds 0.

• A) There is sufficient evidence (at the ? = 0.05) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).
• B) Sales revenue (X) is a poor predictor of service charge (Y).
• C) There is insufficient evidence (at the ? = 0.10) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).
• D) For every $1 million increase in sales revenue, we expect a service charge to increase $0.034.

Understand the nuances of tort law related to personal and property rights.

Differentiate between public figures and private individuals in the context of defamation and false light.

Acknowledge the role of tort law in providing remedies for civil wrongs and preventing future harms.

Understand the basic elements and objectives of tort law.

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Definitions:

Prior To Incorporation

Activities or agreements that occur before the legal establishment of a corporation.

Notice

A formal declaration or statement made to parties regarding a specific legal process or action.

Annual Meeting

A yearly gathering of a company's shareholders or members to discuss its affairs, review financial statements, and elect board members.

Special Meetings

Meetings called for a specific purpose, outside of the regular schedule of meetings, often requiring a special notice for attendance.