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

question 186

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 ?₀,the Y-intercept of the line.

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

Recognize the interaction between leading and following behaviors in creating leadership outcomes.

Articulate the benefits of being a follower and how followers can learn from leaders.

Explain the concept of reversing the lens in the study of followership and leadership.

Understand the impact of follower's actions on organizations and leaders.

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Definitions:

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