TABLE 13-1 A Large National Bank Charges Local Companies for Using Their

Multiple Choice

TABLE 13-1
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) -measured in dollars per month-for services rendered to local companies.One independent variable used to predict service charges to a company is the company's sales revenue (X) -measured in millions of dollars.Data for 21 companies who use the bank's services were used to fit the model:
Y_i = β₀ + β₁X_i + ε_i
The results of the simple linear regression are provided below.
-Referring to Table 13-1,a 95% confidence interval for β₁ is (15,30) .Interpret the interval.

A) You are 95% confident that the mean service charge will fall between $15 and $30 per month.
B) You are 95% confident that the sales revenue (X) will increase between $15 and $30 million for every $1 increase in service charge (Y) .
C) You are 95% confident that mean service charge (Y) will increase between $15 and $30 for every $1 million increase in sales revenue (X) .
D) At the α = 0.05 level,there is no evidence of a linear relationship between service charge (Y) and sales revenue (X) .