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 , measured in dollars per month, for services rendered to local companies. One independent variable used to predict service charge to a company is the company's sales revenue , measured in $ million. 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.
Interpret the -value for testing whether exceeds 0 .
A) There is insufficient evidence (at ) to conclude that service charge is positively linearly related to sales revenue .
B) Sales revenue is a poor predictor of service charge .
C) There is sufficient evidence (at ) to conclude that service charge is positively linearly related to sales revenue .
D) For every million increase in sales revenue , we expect a service charge to increase $.064.
Correct Answer:
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Q23: The Method of Least Squares specifies that
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