SCENARIO 13-1
-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.

Question

SCENARIO 13-1 
-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.

Quizplus · Accepted Answer

The Answer of SCENARIO 13-1 
-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.

SCENARIO 13-1 -Referring to Scenario 13-1, Interpret the Estimate of