A large national bank charges local companies for using its services A bank offi

Question

A large national bank charges local companies for using its services A bank official reported the resuts of a regression analysis designed to rendered to local companies. One independent variable used to predict the service charge to a company is the company's sales revenue (x), measured in $ million. Data for 21 companies were used to fit the model Ely)The results of the simple linear regression are y- 2,700+20x O A. There is no practical interpretation since a sales revenue of $O is a nonsensical value. OB, About 95% of the observed service charges fal wit in $2.700 of the least squares line predict he bank's charges (y), measured in dollars per month, for services who use the bank's services provided below . Interpret the estimate of Bo, the y-intercept of the line For every $1 milion increase in sales revenue, we expect a service charge to increase $2,700 All companies wil be charged at least $2.700 by the bank. 0 D.

Explanation / Answer

The correct answer is A

Explanation:

If X= then companys annual revenue is 0 then Y =-2700=0<0 , so as the companies charges cant be zero ,therefore no practical interpretatiion

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