Simple linear regression, The results of the simple linear

Simple linear regression

Reference no: EM1311511

A large national bank charges local companies fir using their services. A bank official reported the results of a regression analysis designed to predict the bank's charges (y), measured in dollars per month, for services rendered to local companies. One independent variable used to predict services charge to a company is the company's sale revenue (x), measured in $ million. Data for 21 companies who use the bank's services were to fit the model

E(y) = β₀+β₁x

The results of the simple linear regression are provided below.

A) There is insufficient evidence (at a = .05) to conclude that service charge (y) is positively linearly related to sales revenue (x).

B) For every $1 million increase in sales revenue (x), we expect a service charge (y) to increase $.064.

C) There is sufficient evidence (at a = .05) to conclude that service charge (y) is positively linearly related to sales revenue (x).

D) Sales revenue (x) is a poor predictor of service charge (y).

Reference no: EM1311511

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