A large national bank charges local companies for using their services. A bank o

Question

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)Nmeasured in dollars per monthNfor services rendered to local companies. One independent variable used to predict service charges to a company is the company's sales revenue (X)Nmeasured 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. Y 2,700 t 20X, SYX 65, two-tail alue 0.034 (for testing B1) 22) Referring to Scenario 12-1 a95% confidence interval for is (15, 30) Interpret the interval. A At the a 0.05 level, there is no evidence of a linear relationship between service charge (Y) and sales revenue Q). B) You are 95% confident that the sales revenue will increase between $15 and $30 million for every $1 increase in service charge m. You. D Yo are 95% confident that mean service charge m will increase between $15 and $30 for every u $1 million increase in sales revenue (x).

Explanation / Answer

option D is correct, you are 95% confident that mean service charge (Y) will increase b/w $15 and $30 for every 1.....

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