SCENARIO 13-1
-Referring to Scenario 13-1, 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 $65 of the least squares line.
B) About 95% of the observed service charges equal their corresponding predicted values.
C) About 95% of the observed service charges fall within $130 of the least squares line.
D) For every $1 million increase in sales revenue, we expect a service charge to increase $65.

Question

SCENARIO 13-1 
-Referring to Scenario 13-1, 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 $65 of the least squares line. 
B) About 95% of the observed service charges equal their corresponding predicted values. 
C) About 95% of the observed service charges fall within $130 of the least squares line. 
D) For every $1 million increase in sales revenue, we expect a service charge to increase $65.

Quizplus · Accepted Answer

The Answer of SCENARIO 13-1 
-Referring to Scenario 13-1, 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 $65 of the least squares line. 
B) About 95% of the observed service charges equal their corresponding predicted values. 
C) About 95% of the observed service charges fall within $130 of the least squares line. 
D) For every $1 million increase in sales revenue, we expect a service charge to increase $65.

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