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:
The results of the simple linear regression are provided below:
-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.
Correct Answer:
Verified
Q14: Instruction 12.3
The director of cooperative education
Q15: Instruction 12.2
A chocolate bar manufacturer is
Q16: Instruction 12.2
A chocolate bar manufacturer is
Q17: Instruction 12.3
The director of cooperative education
Q18: Instruction 12.2
A chocolate bar manufacturer is
Q20: Instruction 12.3
The director of cooperative education
Q21: Instruction 12.4
The managers of a brokerage
Q22: Instruction 12.9
The management of a chain
Q23: Instruction 12.8
It is believed that the
Q24: Instruction 12.9
The management of a chain
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents