7. 8. 7. TABLE 13-1 A large national bank charges local companies for using thei

Question

7. 8. 7. TABLE 13-1 A large national bank charges local companies for using theirservices. A bank official reported the results of a regressionanalysis designed to predict the bank's charges(Y)?measured in dollars per month?for servicesrendered to local companies. One independent variable used topredict the service charge to a company is the company's salesrevenue (X)?measured in millions of dollars. Datafor 21 companies who use the bank's services were used to fit themodel: E(Y) = beta0 +beta1X The results of the simple linear regression are provided below. = -2,700 + 20X,SYX = 65, two-tailed p value = 0.034(for testing ?1) Referring to Table 13-1, interpret the p value for testingwhether?1 exceeds 0. A)For every $1 million increase in sales revenue, we expect a servicecharge to increase $0.034. B)Sales revenue (X) is a poor predictor of service charge(Y). C)There is sufficient evidence (at the ? = 0.05) to concludethat sales revenue (X) is a useful linear predictor ofservice charge (Y). D)There is insufficient evidence (at the ? = 0.10) to concludethat sales revenue (X) is a useful linear predictor ofservice charge (Y). 8. TABLE 13-1 A large national bank charges local companies for using theirservices. A bank official reported the results of a regressionanalysis designed to predict the bank's charges(Y)?measured in dollars per month?for servicesrendered to local companies. One independent variable used topredict the service charge to a company is the company's salesrevenue (X)?measured in millions of dollars. Datafor 21 companies who use the bank's services were used to fit themodel: E(Y) = beta0 +beta1X The results of the simple linear regression are provided below. = -2,700 + 20X,SYX = 65, two-tailed p value = 0.034(for testing ?1) Referring to Table 13-1, a 95% confidence interval for?1 is (15, 30). Interpret theinterval. A)We are 95% confident that the sales revenue (X) willincrease between $15 and $30 million for every $1 increase inservice charge (Y). B)At the alpha = 0.05 level, there is no evidence of a linearrelationship between service charge (Y) and sales revenue(X). C)We are 95% confident that the mean service charge will fall between$15 and $30 per month. D)We are 95% confident that average service charge (Y) willincrease between $15 and $30 for every $1 million increase in salesrevenue (X).

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Fisher 87, I wanted to say thanks for your help. Taking this classon line is very hard. You have saved my ass. Big Sarge

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