QUESTION 4 dollars per month for services rendered to local companies. One indep

Question

QUESTION 4 dollars per month for services rendered to local companies. One independent variable used to millions of dollars. Data for 21 companies who use the bank's services were used to fit the model: predict service charges to a company is the company's sales revenue 0Q measured in The results of the simple linear regression are provided below Y -2,700+ 20x Syx-65, two tail p value= 0.0034 (for testing 1) Ho: 1=0 Interpret the p value for testing whether 1 exceeds 0 O (Rapot Ho, there is sufficient eviderce (at the -O toconcue tiht sales revenue (O is a useful Inear prodictor of Sales revenue 00 is a poor predictor of service charge ()

Explanation / Answer

Interpretation of p-value:

Since, p-value = 0.0034 < level of significance = 0.05, we reject

H0 and conclude that the slope is significant i.e. sales revenue

is an useful linear predictor of service charge. (Ans).

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